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Will Amazon buy AMC? Here’s what we know so far

Reports suggest AMC could buy Amazon. But are these reports legit?

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People enter AMC’s Studio 30 theater.

In this May 11, 2005, file photo, people enter AMC’s Studio 30 theater in Olathe, Kan. Cinemark, AMC and Regal have all closed their theaters over the coronavirus. The pandemic may change the way we see movies forever.

Orlin Wagner, Associated Press

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 MarketWatch.

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 Marketwatch.

According to the Daily Mail report, AMC and Amazon have held talks about a potential buyout. It’s unclear where these discussions stand or whether or not there will be a deal, either.

Of course, the reports might just be rumors. According to Deadline, Amazon and AMC are not in talks.

AMC is carrying debt as the theater chain had to close its doors amid the coronavirus pandemic. There have been rumors about a potential bankruptcy for the company, as I’ve written about for the Deseret News.

AMC raised $500 million in cash from a debt sale and applied for federal aid, which gave it a boost. The purchase would surprise analysts, though, according to Deadline.

“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.”

Amazon would be following in the footsteps of Netflix, which “has slowly been buying up movie theaters in order to have its films qualify for the Academy Awards,” according to the New York Post.