Amazon Reportedly Looking to Get Into Movie Theater Business
It's one of the Information Age's biggest technology-based businesses and now, Amazon could be a [...]
It's one of the Information Age's biggest technology-based businesses and now, Amazon could be a major player in the movie theater industry. According to Bloomberg, the Jeff Bezos-led business could very well be making it's first foray into cinema-ownership.
Although branching out into original content for their Amazon Prime Video offerings, Bloomberg states that Amazon is reportedly in the running to purchase Landmark Theaters, an acquisition that would give the tech giant it's first brick-and-mortar movie presence.
Should the deal go through, Amazon would find itself the owner of all Landmark locations, accounting for over 50 theaters in 27 markets across the United States — including locations in major markets such as New York, Los Angeles, and Chicago.
Bloomberg is reporting that Landmark has been working with investment banker Stephens Inc. on the sale and that billionaire tech guru Mark Cuban is also another part interested in the purchase. Netflix had also previously been in talks to buy the high-end movie chain.
Whether or not the sale goes through, the news proved beneficial for investors. Shares of AMC Entertainment Holdings Inc. and Cinemark Holdings Inc. both increased amid the news this week with AMC rising over 4 percent — it's highest value in the last 52 weeks.
Even though the industry seems to be in a decline — the Motion Picture Association of America claimed movie admissions in 2017 hit a ten-year low — this is a move could prove tremendously beneficial for Amazon, especially with the company dedicated towards pumping out more original programming.
In addition to producing it's own content, Amazon has also acted as a distributor for films such as the Oscar-winning Manchest by the Sea and Academy Award nominated The Big Sick.
According to USA Today, the deal could be worth between $60 and $120 million. That price tag shouldn't worry Amazon in the slightest — their deal in acquiring mega-retailer Whole Foods closed for $13.7 billion last year.0comments