After the toll that the pandemic took on the film industry last year, movie theaters are trying to make a big comeback. Together A Quiet Place Part II And Cruella With what was a very healthy opening weekend a few days ago, movie theaters are looking to the future and AMC Theaters very well looks to a future where they can acquire the closed Arclight Cinemas and Pacific Theaters.
Earlier this year, it was announced that Los Angeles Arclight Cinemas and Pacific Theaters would be closing their doors for good, including the iconic Cinerama Dome on Sunset Boulevard. While this next news may upset some cinematographers who love the model that was founded by ArcLight, AMC Theaters can swoon to save them. “wrapreports that AMC plans to raise $230.5 million for major acquisitions in the movie theater sector and this is when they confirmed that talks are underway to acquire locations operated by the now-defunct Arclight Cinemas and Pacific Theaters. Adam Aaron, CEO of AMC Entertainment, had this to say about the news:
“Given our scale, experience and commitment to innovation and excellence, AMC is being presented with highly lucrative theater acquisition opportunities. We are discussing, for example, several of the great theaters With the landlords that were previously operated by Arclight Cinemas and Pacific Theatre.”
AMC plans to raise funds through the sale of 8.5 million shares to Mudrick Capital Management. AMC raised $100 million from Mudrick in December as part of a “Loan offer for required capital” While most of its theaters remained closed. AMC has seen its stock rally, but some say it may be part of a Reddit-influenced run on AMC stock, which happened with GameStop stock earlier this year. Despite the reasons for the stock rally, AMC looks confident. Aaron said “This transaction underscores the true value of having some authorized share capital available to us to opportunistically capitalize on shareholder value creation possibilities when they arise. With our increased liquidity, a rapid The vaccination population, and the impending release of blockbuster new film titles, make it time for AMC to take offense again.”
This should be good news for most moviegoers, but some are not 100% behind the idea. While AMC is the largest movie theater chain in America, many feel that this doesn’t make them the best. ArcLight Cinemas really worked for moviegoers and really pioneered the notion of having luxury theaters long before other chains started the idea. Will Arclight change much under AMC ownership? We will have to wait and see but some people believe that changes will happen once the acquisition takes place.
Are you excited that AMC theaters can buy closed ArcLight locations?
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