After a rumor that the world’s largest online retailer, Amazon.com (NASDAQ: AMZN), was interested in purchasing the theater chain, shares of AMC Entertainment stock (NYSE:AMC) surged more than 18% on Tuesday, on track for their biggest increase in a month.
Jeff Bezos, the founder of Amazon, has sent his top entertainment executives and finance advisors to investigate possible acquisition plans for AMC.
AMC has a market worth of roughly $2.4 billion after its shares have increased by about 11% year to date as of Monday’s close. The movie chain has been suffering from low attendance rates as people are streaming content at home.
During the height of the Reddit-driven boom in June 2021, AMC was a well-known “meme” stock with a valuation of more than $23 billion.
The many cinemas owned by AMC would be put to a variety of uses, such as pushing Amazon Prime’s original films for award consideration, cross-selling grocery delivery, and even acting as centers for product distribution.
After Tuesday’s increase, AMC Entertainment stock (NYSE:AMC) market value was $2.6 billion; yet, over the past year, the stock has dropped by almost 72%. According to the article, Bezos might choose to do nothing in the event that the stock price keeps falling or he might act quickly in the event of bankruptcy.
