Cinema stocks tumble after report Amazon in the running to acquire Landmark Theatres

Cinema stocks tumble after report Amazon in the running to acquire Landmark Theatres

Cinema stocks tumbled in premarket trade Thursday morning after Bloomberg reported that e-commerce giant Amazon.com Inc. AMZN, +1.01%  is looking to acquire theater chain Landmark Theatres.

AMC Entertainment Holdings, Inc. AMC, +2.26% shares fell 2.3% in premarket trade, followed by shares of IMAX Corporation IMAX, -2.60% down 1.3%. Shares of Cinemark Holdings, Inc. CNK, +1.42%  fell 0.9%. Shares of smaller-cap cinema companies Marcus Corporation MCS, +0.92%  and Reading International, Inc. RDI, +1.05%  held steady.

Amazon shares were up 1% in premarket trading.

Read: Amazon earnings explode to record thanks to surprising e-commerce profit, stock gains

Bloomberg said late Wednesday that Amazon is currently in the running, along with some other suitors, to acquire Landmark from Wagner/Cuban Cos. Landmark’s owners are working with investment banker Stephens Inc. on a possible sale, Bloomberg reported, though no final decisions have yet been made.

Amazon already has a film studio, TV studio and music service, and acquiring Landmark would give the company a chain of more than 50 theaters with 252 screens in 27 markets. The theater chain was founded in 1974 and focuses on independent and foreign films.

Such an acquisition would be a significant move in Amazon’s recent push into the physical space, and would give the company another avenue to distribute its films. The online retailer acquired Whole Foods last year for $13.7 billion and now offers its Prime members discounts at the organic-food chain.

Read more: Amazon Prime members are adopting Whole Foods benefits faster than previous perks

Amazon did not immediately respond to a request for comment.

The stock has gained 61% in 2018, while the S&P 500 SPX, +0.70% has gained 5.4%.

Related posts