AMC Entertainment, the world’s largest movie theater chain, has announced that it will no longer be pursuing a purchase of Cineplex, Canada’s largest movie theater chain.
Show in a tweet from AMC STOCK CEO Adam Aron: “Talks have halted with some Cineworld lenders for AMC to acquire some Regal/Cineworld theatres, with APEs being partial payment. We are disciplined to use our cash or stock ONLY when we are convinced that doing so is in the best interests of AMC shareholders. Our SEC 8K:”
AMC had wanted to increase its global footprint and further solidify its position as the industry leader in movie theaters, so the decision to forgo the acquisition could be looked at as a serious setback for the company, or on the other hand it could be the perfect move by CEO Adam Aron and the AMC team.
COVID-19 has had a significant negative impact on the movie theater industry, with many cinemas closing their doors or operating at reduced capacity. Although the industry’s future is still unclear, it is certain that AMC’s decision to back out of the acquisition of Cineplex for now shows the restraint the AMC team has.