Ever since AMC Stock became one of the most popular stocks among retail investors in the last few years, there has been numerous rumors of the movie theater company possibly being acquired by another larger company. Let’s explore this together and dig deeper into this.
AMAZON AQUIRING AMC ENTERTAINMENT
Amazon to acquire AMC Entertainment rumors go back as far as before 2020 and have made the headlines numerous times since then. Amazon apparently contemplated purchasing the Landmark Theaters network of arthouse theaters before it was sold to Cohen Media Group in 2018. This indicates that Amazon had thought about entering the theatrical movie business in the past. Bloomberg. Amazon is also involved in media with their prime video platform, so although the two companies might from first glance seem a bit random, they might have more in common than some think. Ever since the pandemic the talks of an Amazon and AMC Entertainment collaboration of any sorts seems to be put to rest for now at least.
ELON MUSK TO BUY AMC ENTERTAINMENT
Elon Musk considering buying AMC Entertainment is another rumor that has been tossed around over the last few years. Elon has made it clear that he will but his money where his mouth is when it comes to acquiring companies, he has interest in. He recently purchased twitter which proves he is serious about what he says. Elon has also tweeted out things like the popcorn emoji and even talked about the movie theaters in multiple instances which has AMC Apes intrigued. Elon Musk also seems to stand for a lot of the things the AMC community stands for like rules against aggressive short selling for one, but as of late there has not been any other recent reasons to think that Elon would be looking to buy AMC Ent. per say.
AMC PREPARING FOR MERGER IN FILINGS!?
In a recent form filed by AMC Entertainment included some information that has the community of retail investors known as the apes going crazy.
According to the SEC report under “Adjustments” it says:
In the event of:
|·||the consolidation, merger or conversion of the Company with or into another person in each case pursuant to which the Common Stock will be converted into cash, securities, or other property of the Company or another person.|
|·||any sale, transfer, lease, or conveyance to another person of all or substantially all of the consolidated assets of the Company and its subsidiaries, taken as a whole, in each case pursuant to which Common Stock will be converted into cash, securities, or other property; or|
|·||any reclassification of Common Stock into securities other than Common Stock,|
The filing also says: “Each of which is referred to as a “reorganization event,” each share of the Preferred Stock outstanding immediately prior to such reorganization event will, without the consent of the holders of the Preferred Stock, automatically convert into the kind of securities, cash, and other property receivable in such reorganization event by a holder of the shares of Common Stock into which such share of Preferred Stock was convertible immediately prior to such reorganization event in exchange for such shares of Common Stock. In the event that holders of the shares of Common Stock have the opportunity to elect the form of consideration to be received in such reorganization event, the consideration that the holders of the Preferred Stock are entitled to receive will be deemed to be the weighted average of the types and amounts of consideration actually received, per share of Common Stock, by the holders of the Company’s Common Stock, unless holders of Preferred Stock have the opportunity to elect the form of consideration to be received in such reorganization event.“
Does this reveal something bigger in the pipeline for AMC and Ape Stock? Or is this just a way for the company to structure a filling in the case for something to possibly happen in the future.
Sources to Form 8-A12B: https://sec.report/Document/0001104659-22-086192/