1,000 People Polled About Whether or Not Amazon or Netflix Should Buy AMC

Neither Amazon or Netflix need to burn up money buying debt-ridden AMC

Am already on the record here that AMC should not be bought by Amazon or Netflix. This isn’t my way of saying that I want AMC to fail, no, but would rather see them pull themselves out of debt and rebound.

Periodically, I’ll come across studies and polls where people are asked about this very topic. In this one, investors are polled.

Many respondents were adamant the theater business wasn’t working financially before the pandemic, isn’t working now and won’t work anytime in the near term. Another argument from traders and investors was it’s likely cheaper, and just makes more sense from a marketing perspective, for Netflix and Amazon to start a new theater company altogether than bothering to rescue AMC and their outstanding debt through an M&A deal.

AMC Entertainment Holdings (AMC), Amazon (AMZN), NetFlix (NFLX) – Should Amazon Or Netflix Try To Acquire AMC In 2021? | Benzinga

The main reason this idea is financially illogical is laid out in the article quoted above: debt! Why should either successful company incur AMC massive debt load when they can simply pick off the better theater locations for their own movie theater business.

I’ve previously suggested both companies cherry pick the best locations, so they can promote, market and screen their original movies and other studios. They wouldn’t have to listen to the National Association of Theater Owners (NATO) egocentric views that streaming is some kind of red-headed stepchild of movie watching.

We both like streaming and while we’d rather watch new movies in a theater first, we recognize and appreciate the convenience of being able to watch movies at home as well. We believe that movies should be available to watch wherever people want to watch them: theater, home, on the go, whatever.

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