Will AMC stock now surge as the writers strike finally comes to an end?
Writers and producers are near an agreement to end the Writers Guild of America strike after meeting face-to-face on Wednesday, reports CNBC.
“The two sides met and hope to finalize a deal Thursday, the sources said.
While optimistic, the people noted, however, that if a deal is not reached the strike could last through the end of the year.
On Wednesday evening, the WGA and the Alliance of Motion Picture and Television Producers released a joint statement that the two groups met for bargaining and would meet again Thursday.”
Theatrical films such as “Aquaman and the Lost Kingdom”, “Beetlejuice 2”, “Deadpool 3”, “Gladiator 2”, “Mission: Impossible”, “Mortal Kombat 2”, and many others have been delayed due to the writers strike.
The world’s largest movie exhibition, AMC Entertainment, has had a steady recovery ever since retail investors saved the company from bankruptcy in 2021.
Despite its progress, CEO Adam Aron has stated that the company is in need of titles to keep the train moving forward.
The end of the writers strike will provide the movie theatre chain with endless films for theatrical release.
So far, shares of the company have fallen more than -67% in the past month and more than -74% this year-to-date.
Luckily, the company was able to raise $325 million in fresh capital after its approved proposals.
“The successful completion of this equity offering marks another significant milestone for AMC.
Raising more than $325 million in gross proceeds has bolstered our ability to survive and then thrive.
As we navigate the recovery phase of our industry, this infusion of capital provides us with flexibility to assist us in navigating the waters ahead and continue delivering the magic of movies to our guests,” stated CEO Adam Aron.
The CEO of AMC Now Addresses Shareholders in New Message
The CEO of AMC Entertainment (NYSE:AMC), Adam Aron, recently addressed shareholders in a new message on Twitter.
“You have sent me over 5,000 comments in response to the tweets I wrote just in the past two days.
I try to read them all, or as many as I can. As should be expected, many are positive, many are negative. This may surprise you but I genuinely appreciate receiving all of it, the good but also the bad. Why? Because you own our company.
It is important that I understand what you think –both the favorable and the unfavorable.
At the same time, it is absolutely vital that after distilling all of your feedback, I actually do and action what I think is in the best interests of all of our shareholders,” Adam Aron said on Twitter.
While I am as frustrated as any of you are by the challenges that AMC still faces 42 long months after Covid forced the closure of all of our theatres, that frustration is greatly outweighed by my pride that AMC is still alive and fighting… that AMC is still leading and innovating… and that AMC is eminently stronger with our now greatly increased cash reserves.
How many times have the naysayers and prophets of doom predicted with certainty that AMC would fail? So far, we have proven them wrong. Over and over again. Wrong, wrong, wrong. In my view, AMC has an exciting future ahead, as our industry continues on its long glide path to eventual recovery and as AMC continues to take bold action to be out front.
In the language and customs of the 18th century, a message like this one would be signed “Your humble and obedient servant.”
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