In the US stock market on Tuesday, news that Amazon (AMZN.US) intends to buy AMC Cinema Line (AMC.US) instantly ignited investors' enthusiasm, causing AMC Cinemas stock price to jump 21%, hitting a daily high of 5.5 US dollars.

The Zhitong Finance App learned that some sources indicated that Amazon founder Bezos has sent his investment advisors and top entertainment industry executives to discuss plans to acquire AMC theatres. Amazon closed a $8.5 billion purchase of MGM Pictures last year to bolster its Prime Video streaming service amid increased competition.

Earlier reports indicated that Amazon plans to release 10 to 15 theatrical movies every year, and the AMC theatrical line can be used as a screening platform for these films. According to some insiders, Bezos may wait for the AMC cinema line to continue to decline, and may even wait for AMC to announce bankruptcy before making a takeover.

Since COVID-19 restrictions were lifted, cinemas are struggling to attract audiences as rising costs force people to cut spending on entertainment outside the home and spend more on groceries and rent.

“Given AMC's huge debt and inflated valuations, we don't think it's likely to be an acquisition target overall,” Wadebush Securities said. The securities company said that the UK's Cineworld Group Plc is a more valuable asset to buy under the same category, and the company filed for bankruptcy protection in September.

AMC's total long-term debt amounts to $5.17 billion, according to Refinitiv data. At the end of Monday, the increase in AMC Cinema Line's stock price narrowed. It closed up 13.19% to 5.15 US dollars. Currently, the stock's market value is about 2.7 billion US dollars. As one of the famous “influencer stocks”, under the impetus of the Reddit retail forum, the market value of AMC Cinemas exceeded 23 billion US dollars in June 2021.