AMC Entertainment shares jump on report Amazon exploring a deal

By - Reuters

(Reuters) - Shares of AMC Entertainment Holdings Inc jumped more than 18% on Tuesday, set for their biggest gain in a month, after a report that ecommerce giant Inc was looking to buy the theater chain.

Amazon founder Jeff Bezos has dispatched his investment advisers and top entertainment chiefs to explore acquisition plans for AMC, The Intersect reported, citing sources familiar with the discussions.

AMC and Amazon did not immediately respond to Reuters requests for comment.

Amazon last year closed its $8.5 billion deal for MGM, adding the company behind "Rocky" and James Bond in a bid to draw more customers to its Prime Video streaming service amid intensifying competition.

AMC's shares, which posted a 12-fold jump in 2021 in a Reddit-fueled surge, have gained about 11% this year to Monday's close.

Movie theaters are struggling to draw in crowds since pandemic-restrictions were lifted as rising costs have made people spend more on groceries, rent and gas, while reducing spending on out-of-home entertainment.

(Reporting by Tiyashi Datta and Akash Sriram in Bengaluru; Editing by Sriraj Kalluvila)