Movie theatres worldwide are entering financial peril amidst the novel coronavirus pandemic. Their operations have shut down for the foreseeable future, prompting some of the most notable brands in this marketspace to locate new investors. This extends towards AMC Theatres, with it now being reported that the Amazon Company is considering the full acquisition of this movie theatre chain. It’s also reported that Showcase Cinemas and Regal Cinemas also contacted Amazon for financial freedom. However, Amazon selected against those two respective brands and are moving forward with AMC Theatres.
Most of these movie theatres had hoped they’d reopen their doors weeks after the initial lockdown began. However, that was sixty days ago. It appears that an additional thirty to sixty days of lockdown measures will be imposed on Western Nations. That will force double the lost revenue on these companies, with Summer coming as their most financially profitable quarter. Obtaining an acquisition through Amazon would enable AMC Theatres to remain an active property for the foreseeable future, especially when considering that Jeff Bezos holds $145 Billion in financial wealth. He could afford to purchase all movie theatres worldwide and have barely inflicted his fortune.
It should be mentioned that AMC Theatres is struggling more than their competition. This company stands as the most prominent operator of movie theatres worldwide, supporting 11+ thousand screens globally. All these respective screens are shut down right now, with hundreds of millions being lost weekly to this company. Financial experts were predicting that AMC Theatres would file for bankruptcy during the pandemic. However, obtaining financial freedom with Amazon would revert all chances of AMC Theatres entering bankruptcy.
Jeff Bezos isn’t considering purchasing AMC Theatres from the kindness of his heart. It’s a business investment that would drastically improve the growth of Amazon Studios, which currently develops films and television series for Amazon Prime Video. Instead of these respective properties being released to their streaming service, they’d launch onto the big screen internationally. Amazon would throw hundreds of millions into acquiring new features through notable novels, directors, or writers. The investment would take a prolonged period to see returns but would eventually make Amazon Studios a powerhouse similar to Disney.