It didn't hit up AMC or Regal's parent company on bended knee. Wall Street wasn't initially impressed with a 10-figure deal for Whole Foods Market. Investing Basics He earned his BBA and MBA from the University of Miami, and he splits his time living in Miami, Florida and Celebration, Florida. Let's conquer your financial goals together...faster. Well, that's not a fair description of the value here.AMC is a highly leveraged company. (TMFBreakerRick) See you at the top! The two companies reportedly have held talks about a potential takeover of AMC by Amazon. Amazon's coffers currently hold $36.4 billion of unrestricted cash equivalents. Stock Advisor launched in February of 2002.
Since 1995, Rick has been writing for The Motley Fool, where he's a consumer and tech stocks specialist. The purchase would surprise analysts, though, according to “We would be surprised if an acquisition down near all-time lows by Amazon in a transaction that would more than likely be for cash (and not stock) would appeal to AMC’s major shareholders,” said Eric Wold, an analyst with B. Riley FBR.Another analyst said, “I don’t believe/understand it.”Officials: Vehicle exhaust caused giant Calif. wildfireRecall: Red onions expected in salmonella outbreak shipped to all 50 states and Canada AMC's enterprise value -- the cost of acquiring the actual business since it tacks on debt and subtracts cash from the market cap -- is more than $10.6 billion right now.
We know AMC is in trouble. Consumers are already down on the whole going-out-to-a-movie thing.
Market cap is not enterprise value. There are some interesting arguments for Amazon getting into the movie theater space. Yes, that's a long time with more than 20,000 bylines over those 24 years. Returns as of 08/04/2020. A curious thing happened Monday morning: Shares of struggling AMC Theatres leapt by as much as 56%, to $6.41, after a report circulated that Amazon held talks with the movie chain over a … But Amazon probably wouldn't pay half a billion for AMC. Cumulative Growth of a $10,000 Investment in Stock Advisor3 Reasons Amazon Won't Buy AMC; 1 Reason It Might @themotleyfool #stocks $AMZN $AMC He's been an analyst for Motley Fool Rule Breakers and a portfolio lead analyst for Motley Fool Supernova since each newsletter service's inception.
However, it is not clear if the discussions are still active or if they will lead … It's a rounding error. Between COVID-19 and the Buying AMC now would be more about saving the industry's credibility than just paying more than it should for a single player. But Amazon probably wouldn't pay half a billion for AMC. Amazon CEO Jeff Bezos went for a high-end player with a strong brand and a limited footprint of 53 theaters across the country. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. Put another sobering way, AMC stock can drop to $0.01 and Amazon would still be on the hook for the $10.1 billion in net debt. According to AMC raised $500 million in cash from a debt sale and applied for federal aid, which gave it a boost. If somebody can save the country's multiplex industry, why not Amazon?
About Us If Amazon buying AMC were a movie, then what we’re seeing right now is sort of like the trailer.Reports surfaced over the weekend that Amazon has interest in buying AMC Entertainment’s movie theater chain, according to The Daily Mail first reported Amazon’s interest in buying AMC, which saw its shares skyrocket from 0.00% to 47% in active trading, according to Of course, the reports might just be rumors. With AMC stock having shed more than half of its value over the … Amazon Acquire and AMC Stock Amazon should acquire AMC for one simple reason: it will dramatically boost the value prop of the Amazon Prime ecosystem. The company would also shoulder AMC's crippling long-term debt portfolio of $4.75 billion, which drives the company's … It had enough liquidity at the end of March to withstand the closure of its theaters until a partial reopening in July, but it was also writing many of, if not most of, its landlords at the time to let them know that it Why wouldn't Amazon wait for bankruptcy reorganization with debt fetching pennies on the dollar?
However, the only real reason to buy AMC now -- instead of waiting for later -- would be to save the already diminished AMC brand from getting even more tarnished in bankruptcy. It could help shake up the industry's out-of-touch distribution windows, and it would have a guaranteed outlet for its own productions. Here’s what reports sayShow full articles without "Continue Reading" button for {0} hours. Amazon would shave billions off the price here, and that matters. The stock price is irrelevant. Retirement Owning AMC would give Amazon leverage in landing content deals for films for its streaming service. An industry that aspires to deliver a high-end experience with red carpets, shiny marquees, and dressed-up employees can't afford the credibility hit that a tumbling domino train of bankruptcies would deliver. It would hate AMC without a discount. Microsoft may earn an Affiliate Commission if you purchase something through recommended links in this article. If the real price to buy AMC is taking on its more than $10 billion in debt, wouldn't it behoove a potential buyer to wait for what could be an inevitable bankruptcy if movie theaters aren't allowed to operate at full capacity anytime soon? AMC's stock can double from here and the value of the deal only goes up from $10.6 billion to less than $11.2 billion. If the country's largest player buckles, then it's just a matter of time before the smaller players follow suit.