AMC Entertainment buyout by Amazon unlikely - Wedbush
29/03/2023 12:32
** Wedbush Securities analysts say a buyout offer for AMC
Entertainment Holdings AMC.N by Amazon.com Inc AMZN.O was
unlikely given the theater chain's massive debt and inflation
** News website the Intersect reported e-commerce and cloud
giant Amazon.com was looking to buy AMC, sending AMC shares up
as much as 21% on Tues
** Both companies declined to comment on the report
** "With the Cineworld bankruptcy, Amazon can probably
cherry-pick screens for $200,000 and the creditors will grab an
offer like that. So (Amazon founder Jeff) Bezos' investment
advisers couldn't possibly say 'buy AMC for $8 billion' when he
can buy selected screens for $200 million or less" - Wedbush
** AMC up 3.3% at $5.3 premarket, while AMZN rises 0.8%
** Meme stock AMC currently has a market cap of $2.7 bln,
according to Refinitiv, compared with the over $20 bln valuation
it had at the peak of the Reddit-fueled surge in 2021
** AMC up 26.5% YTD, as of last close
(Reporting by Eva Mathews in Bengaluru)
((Eva.mathews@thomsonreuters.com))