AMC Entertainment CEO announces $2 billion spending on expansion and upgrades

 

The pandemic brought a mixed bag for different stocks. AMC Entertainment not only endured the disruptions of the pandemic but thrived and is now holding $2 billion in liquidity. CEO Adam Aron said that the theater chain will go the offensive to build and expand with these revenues that were gained from its strategic stock sales in the last year.

 

AMC Entertainment will use these funds:

 

  • to seek new cinema leases
  • to upgrade its current theaters
  • to offer new payments options including crypto currency
  • to increase its content offerings and add sports and pre-taped concerts.

 

On Tuesday, CEO Adam Aron appeared on CNBC’s “Squawk on the street.” He said that the millions of individuals investors who had invested in the company in the past six months had lifted it from bankruptcy to liquidity were the owners of his company. He said that they were his bosses, and their suggestions were important as they were the owners of the company. He said that he worked for them, and they did not work for him.

 

He also commented on their huge liquidity of $2 billion and said that it was the biggest ever the company had and that they were the largest theater operator in the world and that they were “playing on offense.”

 

In July AMC had signed a deal to lease two of Los Angeles top grossing cinema theaters: 14-screen  cinema at the The Grove and the 18-screen location at Americana, which were formerly operated by Pacific Theaters. It plans to open the theaters in August. It is also looking at ten other locations in its expansion efforts.

 

New retail investors investors had asked the company to accept bitcoin for movie transactions and concessions. The company has agreed and has said that it would put the relevant technology in place by the end of the year.

 

AMC is also looking at new ways to increase its revenues and could partner with GamesStop, another meme stock driven by individual retail investors, to add gaming events at its theaters.

 

Image-Author Coolcaesar at English Wikipedia


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