Amazon Acquisition Of AMC Is ‘Extremely Unlikely,’ Analysts Say—But AMC Shares Still Soar 13%

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Shares of AMC soared as much as 18% in Tuesday trading following an unconfirmed report that Amazon was nearing an acquisition for the struggling movie chain.

AMC’s share price closed at $5.15, up just over 13% from Monday.

An Amazon spokesperson said the company doesn’t “comment on rumors or speculation,” characterizing the reports as the latter . An Amazon acquisition of AMC is “extremely unlikely,” Wedbush analysts Alicia Reese and Michael Pachter wrote in a Tuesday note to clients, citing the cinema chain’s massive $5 billion debt load.

If it wanted to build its brick-and-mortar movie presence in the U.S., Amazon would likely instead target cheaper to acquire Regal Cinemas locations after its parent company Cineworld filed for bankruptcy, Wedbush suggested.Shares of Amazon were little affected by the buzz, but two stocks closely intertwined with AMC – AMC’s landlord EPR Properties and film technology partner IMAX – gained more than 3% apiece on the acquisition hopes.

 

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