Jim Cramer Believes Amazon Buying AMC Is Possibility

Katherine Ross

Amazon and AMC?

The U.K.’s Daily Mail newspaper reported that Amazon has held talks with the world’s largest cinema-chain owner, which runs movie theaters globally under the AMC and Odeon names in the U.K., the U.S. and Canada, among other locations.

The two companies have reportedly held talks about a potential takeover of AMC by Amazon. 

However, it is not clear if the discussions are still active or if they will lead to a deal, sources told the Mail.

AMC earlier this month come out against Comcast (CMCSA) - Get Report-owned Universal Pictures after Universal opted to bypass theaters and released its “Trolls: World Tour” movie directly to consumers amid the pandemic and global lockdown.

AMC, in retaliation, effectively banned Universal from showing any of its releases in AMC-owned theaters for the foreseeable future.

Speculating on the reports, Jim Cramer said, "Maybe they [Amazon] will use it as a test for their movies." 

With industries like the movie theater industry being hit hard by the coronavirus, could this help AMC in the long run?

And, on the other hand, there's Amazon. So, what does Cramer think that this means for Amazon? He breaks it down in the video above.

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here. 

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Comments (12)
No. 1-11
jennifergram
jennifergram

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Aol_xp
Aol_xp

That reminds me of many stories of companies going bankrupt, catching money from new investors who are unfamiliar with the market.

Aol_xp
Aol_xp

JIM why Amazon will buy with more than 12 billions debt and no profit, chinesse company and this comments came from uk unidentify when the stock are really under perfomance. I believe this was fishing.

Bill Enright
Bill Enright

Need more Drive-In movies theaters. Stay in your own car=social distancing

modown
modown

This would be crazy, but definitely possible, although it doesn't sound like much would happen to the theater-going experience if Amazon's Whole Foods takeover is any example. What I find interesting is the battle of AMC vs. Universal. Can (and should) AMC do that? Wouldn't that be the death knell of movie theaters when they start going head-to-head? Doesn't seem like a good strategy for them.

RJRJ
RJRJ

Bezos loves the Hollywood Limelight

Jaime Eisner
Jaime Eisner

Would Amazon go full vertical integration and provide all the food products in these theaters? Would Prime have a movie passes deal? This could be very interesting.

ErikaSantoro
ErikaSantoro

interesting!

kdriscoll
kdriscoll

Smart take

bykatherineross
bykatherineross

What would the movie going experience look like if Amazon were to acquire AMC?