Amazon is reportedly exploring an acquisition of theater chain AMC Entertainment.
The discussions within Amazon are fluid, the company could wait for AMC’s stock to fall further, or it could choose not to make an offer, The Intersect reported Tuesday (March 28), citing unnamed sources.
Reached by PYMNTS, an Amazon spokesperson said the firm doesn’t comment on rumors and speculation.
AMC Entertainment did not immediately reply to PYMNTS’ request for comment.
An acquisition of the 600-location theater chain could help Amazon promote its Amazon Prime movies, collect data about theatergoers and create additional distribution hubs, according to the report.
AMC stock closed 13% higher Tuesday after rising as much as 21% after the posting of The Intersect report, Bloomberg reported Tuesday.
There was a similar rise in 2021 amid speculation of interest in the company by Amazon, but no acquisition came about at that time, according to the report.
The latest report comes about a month after AMC Chairman and CEO Adam Aron said during an earnings call that the theater chain has come out of the pandemic in a better position than its competitors.
The firm closed 100 underperforming locations during the pandemic and has opened 54 new, better performing sites since then, Aron said during the Feb. 28 call.
AMC has also partnered with Walmart to sell its popcorn in the retail giant’s stores, teamed up with Visa to build a forthcoming co-branded card that will offer rewards on purchases inside and outside the theater, and is looking to improve its loyalty program, Aron said at the time.
As for Amazon, the company recently touted a string of historic firsts by its growing media projects.
The first season of “The Lord of the Rings” was watched by over 100 million viewers and drove Prime sign-ups worldwide, and the inaugural season of “Thursday Night Football” delivered 11% audience growth among hard-to-reach 18- to 34-year-olds, management said Feb. 2 during the company’s quarterly earnings call.
“Prime membership continues to be a great value for our customers, and improving our Prime benefits is a continuous part of our investment strategy,” Amazon Chief Financial Officer Brian Olsavsky said during the call.