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AMC rescued from $600 million in debt due to Meme Stock Rally

Lump

Lump

One Winged Slayer
Member
Oct 25, 2017
16,082
www.polygon.com

‘Meme stock’ rally rescues AMC Theatres from $600M debt

Theater chain gets unexpected lifeline when private equity trades a corporate IOU for stock
www.polygon.com www.polygon.com

Wiping out more than half-a-billion dollars in debt, though, should take a lot of pressure off AMC in the short term. "A week ago, it was not crazy to think this company was doomed," Bloomberg's Matt Levine wrote on Thursday. "Now it is entirely possible that it will survive and thrive and show movies in movie theaters for decades to come because everyone went nuts and bought meme stocks this week."
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AMC Theaters may have been saved and will now stand a much higher chance of surviving coronavirus all because redditors went bonkers this week when it came to stocks. AMC's fate was really shaky before this week.
 

Bundy

Banned
Oct 27, 2017
20,931
There is only one way: Up! 🚀

🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀
 
chefbags

chefbags

Member
Oct 25, 2017
9,297
That's wild lol. I'm happy they'll have a chance to survive, wouldn't want theaters to fully die out from this pandemic.
 
Dest

Dest

Has seen more 10s than EA ever will
Coward
Jun 4, 2018
14,079
Work
Can't wait to watch the hit Sony Meme Movie at the AMC theaters!
 
SlyCoug88

SlyCoug88

Member
Jan 10, 2018
818
I'm going to lose money on the single share I bought, but happy to feel like I contributed in some small way to the future of theaters.
 
Xando

Xando

Member
Oct 28, 2017
27,382
Unlike GameStop they're smart enough to dilute the shit out of this and take advantage of retail investors
 
Owl

Owl

Member
Oct 25, 2017
10,174
California
I'm pretty sure AMC said they were able to secure funding to survive the pandemic before this big rally happened.

This is why it was pretty safe to invest big on AMC with plans to hold until after the pandemic even if the memes don't skyrocket next week
 
jediyoshi

jediyoshi

Member
Oct 25, 2017
5,138
SlyCoug88 said:
I'm going to lose money on the single share I bought, but happy to feel like I contributed in some small way to the future of theaters.
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You and me brother

M1QhRrI.png
 
Lozjam

Lozjam

One Winged Slayer
Avenger
Nov 1, 2017
1,966
Haha this is quite fantastic.

To think, while corporations are certainly a huge force in our society. These asshole hedge funders do even more so, without providing any essential service at all. That's what they get for betting against a company, and actively trying to kill it off.
 
Keywork

Keywork

Member
Oct 25, 2017
3,140
So glad they are now likely to survive. The best theater in my area is an AMC and it would be shame to see it go.
 
hanshen

hanshen

Member
Jun 24, 2018
3,873
Chicago, IL
Diamond Hands (2022), an Adam McKay film starring Luke Wilson, based on the book of the same name by Michael Lewis. Coming to your local AMC theater.

im-292293
 
odiin

odiin

Member
Oct 27, 2017
3,738
Somebody better make a movie about this.

and release it direct to streaming.
 
Euler007

Euler007

Member
Jan 10, 2018
5,045
Another way to look at it is that a bunch of creditors that had very little chance to be repaid by AMC got their money from retail investors instead.
 
Carthago Delenda Est

Carthago Delenda Est

Banned
Oct 28, 2017
6,119
I like A-List quite a lot and I like the Dolby theater. Regal and Alamo's offerings weren't quite as good. So I'm quite pleased they'll survive.
 
Blader

Blader

Member
Oct 27, 2017
26,634
Didn't they just announce 900m in financing that would keep them afloat through most of this year though?
 
Servbot24

Servbot24

The Fallen
Oct 25, 2017
43,226
I don't understand how this actually matters to GameStop and AMC business long term. Once this thing blows over they are both going to have to face the problem of their businesses being nearly obsolete (GS much moreso than AMC, I do think theatres have a future)
 
Khamsinvera

Khamsinvera

Member
Oct 31, 2017
1,580
hanshen said:
Diamond Hands (2022), an Adam McKay film starring Luke Wilson, based on the book of the same name by Michael Lewis. Coming to your local AMC theater.

im-292293
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DFV, who is part contributed to AMC's stock rise, should get a lifetime AMC pass inc. all the snacks he & his family can eat. Also, they need to have tendies on the menu from now on.
 
Wag

Wag

Member
Nov 3, 2017
11,638
As much as I want theaters to survive, AMC doesn't deserve it. They're a shitty company that treats their employees like shit.
 

Deleted member 22630

Member
Oct 28, 2017
10,000
Servbot24 said:
I don't understand how this actually matters to GameStop and AMC business long term. Once this thing blows over they are both going to have to face the problem of their businesses being nearly obsolete (GS much moreso than AMC, I do think theatres have a future)
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Theaters will continue be around as long as they make going more and more of an experience.
 
DopeyFish

DopeyFish

Member
Oct 25, 2017
10,800
Servbot24 said:
I don't understand how this actually matters to GameStop and AMC business long term. Once this thing blows over they are both going to have to face the problem of their businesses being nearly obsolete (GS much moreso than AMC, I do think theatres have a future)
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when you raise money, you're diluting the value of stocks essentially

so if you triple the market cap, you can essentially triple the amount of money raised without changing the rate in which shares are diluted.

(though this isn't the same, but it does show how the market cap of a company can save it)
 
OP
OP
Lump

Lump

One Winged Slayer
Member
Oct 25, 2017
16,082
Blader said:
Didn't they just announce 900m in financing that would keep them afloat through most of this year though?
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Yeah but now they don't have a sword of damocles comprised of debt hanging over their head if shit doesn't recover fast enough. The chances of AMC becoming the next Toys R Us are greatly diminished.
 
Xando

Xando

Member
Oct 28, 2017
27,382
Euler007 said:
Another way to look at it is that a bunch of creditors that had very little chance to be repaid by AMC got their money from retail investors instead.
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Some of them even converted their credit to stocks this week and made "the trade of a lifetime thanks to the basement bandits."

Servbot24 said:
I don't understand how this actually matters to GameStop and AMC business long term. Once this thing blows over they are both going to have to face the problem of their businesses being nearly obsolete (GS much moreso than AMC, I do think theatres have a future)
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Their business model is still dying but atleast they now can die a little slower
 
Parthenios

Parthenios

The Fallen
Oct 28, 2017
13,620
Hmm, this almost makes me think that letting equity firms that control all of the capital bet *against* the companies that need that capital is a conflict of interest and a bad idea!
 
JohnsonUT

JohnsonUT

Member
Oct 27, 2017
2,032
Servbot24 said:
I don't understand how this actually matters to GameStop and AMC business long term. Once this thing blows over they are both going to have to face the problem of their businesses being nearly obsolete (GS much moreso than AMC, I do think theatres have a future)
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In Amc's case it buys them time to figure out a new business model that isn't shrinking. It is unlikely though they are able to do it.

I don't know if Gamestop has done anything to take advantage and raise cash. If they haven't, this does nothing for them.
 
Maxina

Maxina

Banned
Oct 28, 2017
3,308
WE LIKE THE STOCK.







Memes aside, i love theaters, and honestly wouldn't like them to disappear, streaming just isn't the same.
 
Dr Doom

Dr Doom

Member
Oct 25, 2017
12,028
I was on the verge selling my stocks before the weekend

but now I'll hold. I am up 50%
 
effingvic

effingvic

Member
Oct 25, 2017
14,287
I made a quick buck on AMC but if that helped saved the company and possibly lots of jobs as well, thats kinda cool.
 
Fox318

Fox318

Member
Oct 25, 2017
7,603
I actually miss going to the movies.

Something nice about having zero distractions.
 
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