AMC Entertainment (NYSE:AMC) news regarding discussions of a buyout from Amazon (NASDAQ:AMZN) have AMC stock skyrocketing on Monday.
The original report emerged over the weekend from the U.K.’s Daily Mail, where they stated that Amazon is “circling” AMC in hopes of a possible acquisition. Like other businesses, AMC Entertainment has taken a major hit due to the novel coronavirus keeping people from movie theaters.
Additionally, according to the article, “The duo are thought to have held talks about a potential takeover of AMC by Amazon. However, it is not clear if the discussions are still active or if they will lead to a deal, sources said.”
This possible deal would mark a major moment in the world of cinema. Amazon has made its mark in recent years in the streaming wars with fellow giant Netflix (NASDAQ:NFLX), and taking over an entertainment entity like AMC would be a major move for the Jeff Bezos and company.
AMC is the world’s largest cinema-chain owner. As of Dec. 31, 2019, AMC owned, operated, or had interests in 636 theaters in the U.S. and 368 theaters internationally.
The news boosted AMC stock nearly 30% on Monday. This only pushed it to a market capitalization of around $550 million, however — it would make a bite-sized acquisition for the $1 trillion Amazon, should the latter decide to pursue this deal.
Nick Clarkson is a web editor at InvestorPlace. As of this writing, he did not hold a position in any of the aforementioned securities.
