Amazon would only do a cash buyout.In an all-cash deal, investors convert all of their shares into cash but don't get a stake in the merged company. Instead, they can independently buy shares in the acquiring company after they receive the cash. Price would be determined by the end of day market price when announced.
Amazon is trying to cut the time it takes to get packages to customers as it fights off competition as traditional retailers like Walmart move into e-commerce. If Amazon acquired AMC Entertainment, it could use its theater locations as pickup points for its commerce customers. For AMC Entertainment, being bought by Amazon could help end its financial struggles.
Amazon might include free theater tickets with a Prime subscription, which could boost the appeal of the service, attract more subscribers, and generate more subscription revenue. Prime subscribers pay $119 per year to unlock a range of perks including free delivery for Amazon retail shopping and video streaming. It could allow Amazon to extend the reach of its shows and movies, potentially enabling it to make more money from its production business. What better way to save money than an announcement that is post dated and can be easily cancelled or changed into an acquisition order, that could bring the stock down below a 1.50. Cash deals almost always are terrible for investors.It would be easy to lock in t...