Evolving technologies and consumer habits are changing the movie theater business amid the coronavirus pandemic, potentially giving new players a rare chance to enter the business through opportunistic M&A.
Recent reports indicate that AMC Entertainment Holdings Inc. — beleaguered with a leveraged balance sheet and the prospect of ongoing theater closures due to the outbreak — was approached by Amazon.com Inc. to discuss a potential deal. While analysts believe such a major acquisition would be unlikely given the risk for Amazon and the lack of reward for AMC shareholders, the prospect comes at a time when the movie theater industry is ripe for disruption.
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