AMC Entertainment shares jump on report from Amazon exploring a deal

March 28 (Reuters) – Shares of AMC Entertainment Holdings Inc (AMC.N) rose more than 18% on Tuesday, marking its biggest gain in a month after a report on e-commerce giant Amazon.com Inc (AMZN.O) I want to buy the theater chain.

Amazon founder Jeff Bezos has dispatched his investment advisers and top entertainment bosses to review acquisition plans for AMC, The Intersect reported, citing sources familiar with the discussions.

AMC and Amazon did not immediately respond to Reuters requests for comment.

Amazon finalized its $8.5 billion deal for MGM last year, adding the company behind “Rocky” and James Bond in a bid to attract more customers to its Prime Video streaming service amid increasing competition.

Shares of AMC, which posted a 12-fold jump in 2021 in a Reddit-driven surge, are up about 11% this year through Monday’s close.

Movie theaters have struggled to attract crowds since pandemic restrictions were lifted as rising costs have led people to spend more on groceries, rent and petrol while reducing spending on entertainment outside the home.

Reporting by Tiyashi Datta and Akash Sriram in Bengaluru; Edited by Sriraj Kalluvila

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