No, Amazon, You Don't Need 10,000 AMC Screens, This Movie Theater Chain A Better Buy: Analyst
No, Amazon, You Don't Need 10,000 AMC Screens, This Movie Theater Chain A Better Buy: Analyst
AMC Entertainment Holdings Inc (NYSE:AMC) is reportedly in the crosshairs of Amazon.com Inc (NASDAQ:AMZN), as the e-commerce giant has long-coveted a theater chain to bolster the prestige of its movies.
According to one analyst, it's looking at the wrong company.
"Amazon does not need 10,000 screens to enter the theater business," Wedbush analyst Alicia Reese says. In fact, Amazon "would be better off buying a piece of Cineworld," she added.
See Also: Cathie Wood Says There's A Cooler Kid In 'Innovation Town'
Recall how Cineworld (OTC:CNNWQ), the U.K. parent company of Regal, went bankrupt in September 2022.
Amazon could probably acquire each of Cineworld's theaters for only $200,000, Wedbush argues.
That's 1,000 screens for $200 million, total.
"Why would Amazon instead choose to buy 10,000 screens for $8 billion?" Reese asks. "The bottom line is that Amazon has no interest in being in the theatrical exhibition space to make money. Strategically, they may want a place to exhibit their own films, but 1,000 screens is plenty, and 200 is probably enough."
Amazon founder and former CEO Jeff Bezos recently told investment advisors to look into a potential acquisition of AMC. If the company owns theaters, it can showcase Prime movies and other Amazon services.
If Seattle-based Amazon were to ink a deal with Cineworld, it would certainly hurt AMC, whose CEO, Adam Aron, recently stressed the importance of raising cash and reducing debt for the company's survival. The Leawood, Kansas-based company burned through $830 million in cash in 2022 and posted a negative free cash flow of $105 million in the fourth quarter.
AMC Price Action: AMC shares dipped 3.41% Wednesday afternoon at the time of writing to $4.96, according to Benzinga Pro.
Next: AMC CEO Is In Touch With NYSE, FNRA About Stock Staying In 'Threshold List' For 'Failure-To-Deliver'
Image from Pixabay
AMC Entertainment Holdings Inc (NYSE:AMC) is reportedly in the crosshairs of Amazon.com Inc (NASDAQ:AMZN), as the e-commerce giant has long-coveted a theater chain to bolster the prestige of its movies.
AMC 娛樂控股 (紐約證券交易所代碼:AMC) 據報是在十字準線 亚马逊公司 （NASDAQ：AMZN），因為這家電子商務巨頭長期以來一直夢寐以求的劇院鏈，以增強其電影的聲譽。
According to one analyst, it's looking at the wrong company.
根據一位分析師的說法，它正在尋找錯誤的公司。
"Amazon does not need 10,000 screens to enter the theater business," Wedbush analyst Alicia Reese says. In fact, Amazon "would be better off buying a piece of Cineworld," she added.
「亞馬遜不需要 10,000 個屏幕進入劇院業務，」韋德布什分析師艾麗西亞·里斯說。事實上，亞馬遜「會更好地購買一塊 Cineworld，」她補充說。
See Also: Cathie Wood Says There's A Cooler Kid In 'Innovation Town'
另請參閱：凱西·伍德（Cathie Wood）說「創新之城」中有一個涼爽的孩子
Recall how Cineworld (OTC:CNNWQ), the U.K. parent company of Regal, went bankrupt in September 2022.
回想如何 電影世界 英國富豪母公司 (OTC: CNNWQ) 於 2022 年 9 月破產。
Amazon could probably acquire each of Cineworld's theaters for only $200,000, Wedbush argues.
威布什認為，亞馬遜可能只以 20 萬美元的價格獲得電影世界的每個劇院。
That's 1,000 screens for $200 million, total.
這就是一千個屏幕，總共 2 億美元。
"Why would Amazon instead choose to buy 10,000 screens for $8 billion?" Reese asks. "The bottom line is that Amazon has no interest in being in the theatrical exhibition space to make money. Strategically, they may want a place to exhibit their own films, but 1,000 screens is plenty, and 200 is probably enough."
「為什麼亞馬遜會選擇以 80 億美元的價格購買 10,000 個屏幕？」里斯問道。「底線是，亞馬遜對在戲劇展覽空間賺錢沒有興趣。從策略上講，他們可能想要一個展示自己電影的地方，但 1,000 個屏幕很多，而 200 個可能就足夠了。」
Amazon founder and former CEO Jeff Bezos recently told investment advisors to look into a potential acquisition of AMC. If the company owns theaters, it can showcase Prime movies and other Amazon services.
亞馬遜創始人兼前任 CEO 傑夫·貝佐斯 最近告訴投資顧問研究一項潛在收購 AMC。如果該公司擁有劇院，它可以展示 Prime 電影和其他亞馬遜服務。
If Seattle-based Amazon were to ink a deal with Cineworld, it would certainly hurt AMC, whose CEO, Adam Aron, recently stressed the importance of raising cash and reducing debt for the company's survival. The Leawood, Kansas-based company burned through $830 million in cash in 2022 and posted a negative free cash flow of $105 million in the fourth quarter.
如果總部位於西雅圖的亞馬遜與 Cineworld 達成交易，那肯定會傷害他的首席執行官 AMC 亚当·阿隆最近強調籌集現金和減少債務為公司的生存的重要性。這家總部位於堪薩斯州的利伍德公司在 2022 年燒毀了 8.30 億美元的現金，並在第四季度錄得 1.05 億美元的負自由現金流。
AMC Price Action: AMC shares dipped 3.41% Wednesday afternoon at the time of writing to $4.96, according to Benzinga Pro.
AMC 價格行動： 據本辛加臨表示，在撰寫本文時，AMC 股票下跌了 3.41％，在撰寫本文時，週三下午至 4.96 美元。
Next: AMC CEO Is In Touch With NYSE, FNRA About Stock Staying In 'Threshold List' For 'Failure-To-Deliver'
下一個：AMC 首席執行官與紐約證券交易所，FNRA 關於股票停留在「失敗交付」的「閾值清單」中
Image from Pixabay
圖片來自皮克斯
譯文內容由第三人軟體翻譯。
風險及免責聲明
- 分享到weixin
- 分享到qq
- 分享到facebook
- 分享到twitter
- 分享到微博
- 粘贴板
使用瀏覽器的分享功能，分享給你的好友吧