Takeover Rumors: Amazon is planning to acquire AMC movie theater chain

The Dailymail in the UK reported that the troubled company is getting close to a buyout offer from Amazon. 

· Amazon is circling AMC Theatres, the troubled owner of Odeon Cinemas

· The duo are said to have held talks about a potential takeover of AMC by Amazon

· But it is not clear if the discussions are still active or if they will lead to a deal

The Dailymail claimed that a source said Amazon company led by billionaire Jeff Bezos and AMC have held talks for a potential takeover. As a result, AMC shares soared by 30%.  

Amazon is notorious for invading different market sectors and acquiring them to strengthen its balance sheet. AMC is suffering now and it has $4.9 billion debt, therefore it looks like an easy takeover target for Amazon.

AMC stock was selling at $6.76 per share in January 2020, it went down to $1.95 per share when the coronavirus forced movie theaters to close doors. However, the stock is now back up to $4.58 due to a takeover rumor.