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Verge: AMC warns investors that the company will run out of cash by January if it doesn't find $750 million
- Thread starter Saucycarpdog
- Start date
- News
Yeah, this story is basically a signal flare that tells Disney and other companies "Oh, AMC's starving husk is going to be at its cheapest and most desperate in January? I think that'll be a good month to make an offer, then."
Disney just unveiled a gigantic content slate that is 80% Disney+. I don't think buying a massive theater chain is high on their agenda.
Don't think studios have a whole lot interest. Maybe cinemas in the big cities but i doubt disney has interest to run a large network of theatres.
Also this. They forecasted 350m D+ subs by 2024 yesterday so that will be the next focus
My last movie in theaters that I remember was Uncut Gems. Intense experience in a theater that wouldn't have been the same at home. Very glad I got the theater experience.
(Disclaimer, I despise 99.9% of Adam Sandler's films)
I presume any AMC buyout would include their library of content. That's what they want, not the theatres.
Investing in the theater experience was a smart move, I'm not arguing against that. What I'm saying is they should've been downsizing along with those investments, since operating at the scale they're currently at in an age where brick & mortar footprints have shrunk across the board in the face of a global paradigm shift towards digital retail/consumption was financially negligent.
Operating costs are essentially exacerbating the lack of cash flow.
What IPs do they own that would make it worthwhile to drop billions on them?
yeah no way disney wants to be tied up in more rent payments right now. Arent they still planning to lay of a ton of people in q1?
AMC Theatres and AMC Networks seem to be independent of each other.
Breaking Bad, Walking Dead, Better Call Saul, their library is pretty extensive.
Ready to go theatre chain infrastructure they don't need to build themselves, just downsize and renovate.
Oh that poster thought AMC theatres and AMC network are the same, common mistake.
Isn't that AMC the network which is different from the cinemas?
'Even' in New York City AMC has not delivered a great product. In my experience of course.
AMC Theatres is independent of AMC network. Two completely different entities.
Yeah. I really enjoy going to the movies. Especially my local AMC which has really nice recliner sofas.
AMC Networks is owned by the Dolan family, not AMC Theatres.
Ah yeah I remember it fell through but I think part of that was because of the huge debt burden it would add to their already insane debt so they pulled out and it wasn't done in the right way from what I read so yeah expanding based on debt is a dumb idea to allow to go on and on without letting companies that practice in a bad way like that fail, there's no fear for these companies, their whole game plan now is to start off and run up insane debt expanding so fast and hard that by the time shit hits the fan they can try and argue they are so big with so many employees that they can't possibly be allowed to fail and want socialism to kick in to keep them alive even though they caused the issues in the first place and had no thoughts for the workers if things went badly.
Yup same here. My local AMC just renovated not even two years ago and I hate for it to just go away.
Would be interesting if they add a moviepass thing to Prime and nab more movies for Prime Video/Amazon Theatres.
Fingers crossed that Alamo makes it through all this. I had their monthly subscription and I was going about 2-3 times a week with my gf for a reasonable price. Love that smaller theater feel
Disney is the last company I would expect to purchase a movie theater chain. They are trying to make revenue due to the parks being closed and at limited capacity. Disney+ is a huge part of that.
I would expect either Amazon or Google maybe. Mostly for the ad revenue. Apple wouldn't care as they have iTunes. If anything, even Amazon, Google & Apple would help facilitate movies going straight to home with new devices, streaming services, etc.
Just checking their Wiki, and since the turn of the decade, this is what AMC has spent on acquisitions:
- $275 million in 2010
- $175 million in 2015
- $2.31 billion in 2016 (spit in purchases of $1.1 billion and $1.21 billion)
- $929 million in 2017
So at a time where businesses were scrambling to reduce their physical presence in order to cut overhead, AMC spent over $3.5 billion to grow rapidly, and in a very short window at that.
- $275 million in 2010
- $175 million in 2015
- $2.31 billion in 2016 (spit in purchases of $1.1 billion and $1.21 billion)
- $929 million in 2017
So at a time where businesses were scrambling to reduce their physical presence in order to cut overhead, AMC spent over $3.5 billion to grow rapidly, and in a very short window at that.
I don't really think you can fault AMC in this case.
Spending lots of money to renovate their theaters into more of a premium experience was the perfect response to streaming being on the rise. Things like the leather recliners, reserved seating, Dolby and IMAX screens etc made theaters a more pleasant experience than they were before -- and a better experience than the vast majority of people could ever get at home. They had just launched the A-List subscription service too which kept people loyal to their theaters and as repeat customers.
It was the perfect self-preservation move, and it was working out well for them as Disney was releasing billion dollar grossing movies one after another. I feel like AMC made smart decisions and were about as well-positioned for the future as they possibly could be. It's just that nobody could've foreseen a pandemic that basically killed the entire industry overnight, and a dumb President and his anti-mask followers that prolonged this pandemic for far longer than was necessary.
Yeah, someone's buying it, but it looks like it's a pretty crap regional chain, so I'm not optimistic.
Well they're not going to want to pay sticker price, because that would be dumb. If they can get AMC for a cheap enough price though ... sure, why not.
Sub plans didn't necessarily mean more profits.
They have no content to speak of.
It has been beaten, but let's just clarify.
AMC Theatres (American Multi-Cinema) is a publicly traded company that owns no intellectual property in terms of media. They have land and long term leases, but no real assets.
AMC Networks (name comes from the original channel name, American Movie Classics) is a publicly traded company that controls multiple cable channels with content across film, tv, comics and games.
If someone were to buy AMC Theatres, they would be buying out long term retail leases.
The Dolan family you say? Well, it's time for me to check my family tree
What are your thoughts on them spending on acquisitions during a period of physical location downsizing across the board throughout the 10s?
Because that's where they were financially negligent of market trends, and is what is exacerbating their current weakened state.
that's the smart play. Amazon was looking at another large theater chain even before the AMC interest. Two years ago they looked at getting landmark theaters
they might own some, but most are long term retail leases like 10+ years.