AMC Entertainment (AMC) Stock Rockets On Takeover Chatter

AMC Entertainment AMC Stock News

AMC Entertainment Holdings Inc (NYSE: AMC) is making a run for the top in the market this morning, and for good reason. The stock is up over 40% after reports broke that the company is in talks with about a potential acquisition. Here’s what’s going on:

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AMC Stock Heads Up On Takeover Chatter

Reports are breaking that AMC is going to be taken over. According to various sources, the global chain of movie theaters has caught the interest of Amazon, a company that has been continually growing their video content.

Amazon has a growing roster of small-screen content, and according to these reports, wants to give this content a big-screen outlet. As such, the company has reportedly held talks to take over AMC Entertainment.

At the moment there’s not much information out there about these talks. In fact, while reports suggest that talks have happened, no one seems to know if these talks are still ongoing or what the chances are that they will lead to a deal.

Nonetheless, it makes sense.

Amazon has been working out to build out content for quite some time now. With several original movies and shows now being developed by the company, it is getting deeper and deeper into the entertainment world.

At the same time AMC was struggling before the coronavirus outbreak. With the outbreak in mind, the company is in real trouble. This, combined with a fight between AMC and Universal studios that may lead to Universal films not being shown in AMC theaters, makes the theater chain struggle even more.

As such, if someone was interested in acquiring the theater chain, now would be the time.

A Few Things To Keep In Mind

First and foremost, at the moment, this is nothing more than a rumor. There has been no confirmation from AMC Entertainment, nor Amazon, that talks are or have happened. Rumors are often false and designed to manipulate prices in the market. So, it’s always a good idea to be careful.

Nonetheless, should these rumors be true, and the talks lead to a deal, it would be a big win for those who own AMC stock. Let’s face it, takeovers generally happen at a premium. Should Amazon decide to buy AMC, the premium offered would likely lead to immediate gains for investors.

Nonetheless, we’ll keep an eye on the story and bring the updates to you as they break!

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