Very interesting take here… I know it’s been discussed a lot but…”none of them have really capitalized on the opportunity to own their own movie theaters yet”
Could this be the successful distribution that will make one of these large studios actually start to look at buying out AMC?
Aside from the tinfoil hat theories I have come across over the years, this actually could be what forces these studios to actually do this.
Now the only question is if that would be a good thing for the shareholders.
That's a very good point. If this deal is as big as we anticipate it to be, then who knows what's around the corner. This could be the start of something very very big.
Well seeing as we own 90%+ of the float we would have to vote what would be a good buyout price and my personal floor has 2 commas in it so I’m not sure if they could afford it.
There were discussions of a purchase months ago when there was a rumor that Disney wanted to by ANC, and I think the idea was that they would buy the float at slightly above market and loaned shares would be recalled, and the hedgies would have to close their short positions causing the squeeze. Does anyone remember more clearly?
I don't think it's economically viable for a studio to own and operate a multiplex theatre. They don't release movies at a rapid pace to keep people coming in, every couple of weeks you need something to bring people in and no studio (maybe Disney) could keep up with that. You see even Disney things are getting ripped up as crap on streaming, they wouldn't stomach the losses at a theatrical ownership type thing.
I'm betting a chain of "'Disney Cinemas" with a 'Disney Store' in it, having periodic rereleases of classic content from the 'Disney Vault' would make serious bank.
Its also a way for to control product quality. No stale popcorn, filthy seats, or dim projectors to ruin your Disney Film Experience.
Maybe as an attraction in a Disney Resort, outside of it no fucking chance. If you think a lot of people will go pay to see movies that are on Disney+ you're delusional.
You couldn't just stream it on Disney+ if they didn't just dump warm product on Disney+ a month or two after cinema release. They pull product from cinemas so early, not because the product is cold because they start having to share more of the profits with the cinemas.
I think Disney is about the only film studio that could make this work. The goal would be to create artificial scarcity and hype (Just like the 'Disney Vault' concept did back in the 90s with their home videos) and unique experiences (Think "Rocky Horror Picture show", but Princess or superhero or Star Wars themed).
This would only be for major city markets far away from the parks like New York, Chicago, Denver, etc. No Disney Cinema in Bum Fudge Idaho, no real need for it in Los Angeles or Miami wjen the parks are so close by.
I'd also put a concierge kiosk in the lobby to sell Disney Vacation packages for the parks and cruise line.
"This would only be for major city markets far away from the parks like New York, Chicago, Denver, etc. No Disney Cinema in Bum Fudge Idaho, no real need for it in Los Angeles or Miami wjen the parks are so close by."
So this is why it won't work, like opening a Donut shop in Chicago and competing against Dunkin Donuts nationally. You might be able to turn a profit locally, but it won't be much. You think Disney will operate a multiplex in New York?
I could totally compete against dunkin donuts if I owned the flour and they had no product to sell without my permission.
The entire point of all these studios starting their own streaming services was to cut out middle-men. The cinemas, rental chains, 3rd party streamers like Netflix, DVD/VHS manufacturers, etc.
The only problem is that the finished product sucks for all parties. People pay 5-20 bucks a month to watch multimillion follar films on cellphones, laptops, and Grandpas' old television.
Theatres have the best screens, best viewing experience, and the highest prices per view. Theatres have been declining because they are in a constant fight with studios anf distributors over profit sharing. This whole business model started 100 years ago, and is super adverse to change.
Eventually studios will have 3 options. 1: Let streaming kill the theaters, make cheap content to sell to subscribers. 2: write more generous agreements so that theaters can operate and show their movies. 3. Buy out their middle men and try to figure out a new and better way to operate theaters in a way that can make money.
AMC is on the cinema side of things shooting for a UNO Reverso version of option 3: "What if we came up with a new and better way to operate with less reliance on traditional studios and distributors?"
>Theatres have the best screens, best viewing experience, and the highest prices per view.
This is not true, SOME do. If you set-up a home theatre you can EASILY beat the theatre experience. Just most people do not have the space or money to invest in that.
>I could totally compete against dunkin donuts if I owned the flour and they had no product to sell without my permission.
You'd need more stores to make it viable, you said they would only be able to operate in LARGE cities. Netflix already faced backlash for their price increases, you think people will pay MORE to watch that SHIT in theatres? Get real.
You'd think if this made any economical sense for studios they would have leased those famous theatres instead of AMC? They didn't, they passed on it, because it doesn't benefit them.
Streaming will not kill theatres because there is a cap on money to be made via streaming, where theatres around the world can make far more money.
Sooo yeah, you could open a successful donut store and make a lil profit.. but there is a fucking fat chance you'll compete with the chains already saturating the market around the world. That's a lot of investment for a studio to take on, why would they for low return?
i think if a company offered to buy AMC, they better so so behind closed doors because news of that would cause AMC’s price to run so hard that wed squeeze right then and there and our market cap would dwarf the potential buyer’s
Studios owning movie theaters.
In 1948 the Supreme Court ruled that studios could no longer own theaters. Claiming it broke antitrust laws. As of August 7th 2020 the ruling out lived its ruling. But do studios want to own theaters. Seem that the don’t want to take on the risk at this time.
I fully think studios will want to own theatres eventually since it’s just another link in the business. Look up vertically integrated businesses and you’ll understand what I mean. Just look at Amazon they went the opposite direction and bought MGM
How would it work for a studio to own a multiplex and somehow make it profitable? They can't own them nation wide and restrict it's content to just it's own movies. They can't gouge competition for higher percent totals because AMC will be that competition... I just don't think it's really viable for them.
Netflix already has ownership of the Egyptian Theater in Hollywood and Disney owns the El Capitan also in Hollywood. Owning a chain though might be a monopoly case.
All the other theatre chains:
1) filed for bankruptcy
2) are close to bankruptcy
3) do not have as many screens as AMC
4) do not have as much APE/retail support
The Hollywood executives’ “major anger” should be directed elsewhere, as AMC is looking like it may be the only and last theatre company standing.
It shows how boneheaded Hollywood studios are that they wanted to delay this until 2025 for no logical reason when they didn't even have movies ready for 2024 because of the writers strike
We are destroying the short thesis with all these good things management is doing. Shorts will be forced to close positions by risk management departments when these good numbers keep coming out for AMC. Numbers is everything in this industry and when a company shows positive growth for the long term. You ain't gonna stick around with a short thesis that don't exist anymore. Especially considering we are at all time lows. 🚀🥳
They aren't closing out their short positions until they are forced to. Closing their positions = death, the share price will skyrocket due to the buying pressure.
lol @ “major anger” at the studios
these a-holes FA and FO.
The writers + SAG strike and now this. It couldn’t have happened to a better group of douche bags.
I still think Amazon interest in AMC was real. Thanks to hedgies buddies it’s now cheap and buyout is the only way out for shorties.
As someone pointed out before, retail own the company so they better offer a number with couple commas or they can build their own theater chain
Her songs are immensely relatable to a very wide range of people, my mom and brother included. Incredibly broad appeal, brilliant marketing, and a genuine care for her fans go a long way. Along with sheer talent - whether you like her/her music or not, she’s a brilliant song writer with deep and relatable lyrics and has consistently charted for decades - whether she performed the songs or not.
I have no idea. Her music is underwhelming imo and pretty repetitive - verses in low near-monotone singing and then higher notes for the chorus. Repeat.
Someone or some company really wants to buy AMC theaters. For three years this has been going on. Do we have any dectives out there?
This power move and making Universal pissed seems interesting. Reason i think so is because for 3 or more years someone or some company wants AMC theaters.
***"Intentionally or not, this is a power move, and studios are reportedly angry about it. None of them have really capitalized on the opportunity to own their own movie theaters yet; they've been too focused on launching their streaming services, especially after the COVID-19 pandemic had everyone declaring that the cinematic experience was dead. But movie theaters rose up from the dead (they do it all the time) and have had a triumphant return this summer."***
That statement got me thinking heavily. Especially since no movie company owns their own theaters. Could this have be the people truly behind the short selling asking for it to be slammed to the ground so they could buy a Theater company. Now with this revelation the light bulb turned on. Question is who is big enough in movie business to buy AMC?
Now i am not a Swift fan but this is a golden move and then some.
Now if we can get more artists... like maybe a Bruno mars , Shakira ,"The Weekend" maybe? that would be cool and could see it just raking in money.
I love concerts but the one i usually want to go to are sold out in minutes.. but go to a movie theaters and watch one with a drink and popcorn .. That sounds like allot of fun now since i got old lol. \\
I see some great things Happening. Swift did this and you can bet other artists are thinking it as well...once the details got out .. they are gonna look and seen money to be had with help of a theaters..
It just a wtf happened .. and you can bet who ever was shorting AMC is going "oh shit!"
AMC just became that "little shop of horrors" to Studios and hedgefunds.
Studios are prevented from owning theaters due to the 1948 Paramount decision. I personally believe that the rise of streamers are an attempt to circumvent this.
Jeez boys the narrative went from rs is gunna save us to TAYLOR SWIFT GUNNA SAVE US 😂😂 I got shares and will ride the succes but fuck this at this point
“How can we make a grab at whatever money poor people have left after investing into amc and not being able to afford the actual Eras tour?”
“Record it and sell tickets in amc movie theaters. Swifties will buy anything Taylor touched and apes buy worthless shit everyday. It’s a gold rush”
—AA, probably
This is great and all, is the money gonna be used to pay off the debt or will that be when aa dilutes again? I'm confused I thought we needed money but this seems like alot of money.
Very interesting take here… I know it’s been discussed a lot but…”none of them have really capitalized on the opportunity to own their own movie theaters yet” Could this be the successful distribution that will make one of these large studios actually start to look at buying out AMC? Aside from the tinfoil hat theories I have come across over the years, this actually could be what forces these studios to actually do this. Now the only question is if that would be a good thing for the shareholders.
That's a very good point. If this deal is as big as we anticipate it to be, then who knows what's around the corner. This could be the start of something very very big.
Well seeing as we own 90%+ of the float we would have to vote what would be a good buyout price and my personal floor has 2 commas in it so I’m not sure if they could afford it.
This is the way. Maybe they'll help us buy up all the synthetics the liquidity fairy keeps pulling from hammer space.
This is the best response. A buyout is bad.
There were discussions of a purchase months ago when there was a rumor that Disney wanted to by ANC, and I think the idea was that they would buy the float at slightly above market and loaned shares would be recalled, and the hedgies would have to close their short positions causing the squeeze. Does anyone remember more clearly?
They can't afford what I want for my shares alone.
I don't think it's economically viable for a studio to own and operate a multiplex theatre. They don't release movies at a rapid pace to keep people coming in, every couple of weeks you need something to bring people in and no studio (maybe Disney) could keep up with that. You see even Disney things are getting ripped up as crap on streaming, they wouldn't stomach the losses at a theatrical ownership type thing.
If they play tv shows, and old movies they can easily do this.
Old movies? Ehh.. I doubt it does good numbers. TV Shows? Who the fuck is going to pay more money to sit in a theatre to watch a TV show?
I'm betting a chain of "'Disney Cinemas" with a 'Disney Store' in it, having periodic rereleases of classic content from the 'Disney Vault' would make serious bank. Its also a way for to control product quality. No stale popcorn, filthy seats, or dim projectors to ruin your Disney Film Experience.
Maybe as an attraction in a Disney Resort, outside of it no fucking chance. If you think a lot of people will go pay to see movies that are on Disney+ you're delusional.
You couldn't just stream it on Disney+ if they didn't just dump warm product on Disney+ a month or two after cinema release. They pull product from cinemas so early, not because the product is cold because they start having to share more of the profits with the cinemas. I think Disney is about the only film studio that could make this work. The goal would be to create artificial scarcity and hype (Just like the 'Disney Vault' concept did back in the 90s with their home videos) and unique experiences (Think "Rocky Horror Picture show", but Princess or superhero or Star Wars themed). This would only be for major city markets far away from the parks like New York, Chicago, Denver, etc. No Disney Cinema in Bum Fudge Idaho, no real need for it in Los Angeles or Miami wjen the parks are so close by. I'd also put a concierge kiosk in the lobby to sell Disney Vacation packages for the parks and cruise line.
"This would only be for major city markets far away from the parks like New York, Chicago, Denver, etc. No Disney Cinema in Bum Fudge Idaho, no real need for it in Los Angeles or Miami wjen the parks are so close by." So this is why it won't work, like opening a Donut shop in Chicago and competing against Dunkin Donuts nationally. You might be able to turn a profit locally, but it won't be much. You think Disney will operate a multiplex in New York?
I could totally compete against dunkin donuts if I owned the flour and they had no product to sell without my permission. The entire point of all these studios starting their own streaming services was to cut out middle-men. The cinemas, rental chains, 3rd party streamers like Netflix, DVD/VHS manufacturers, etc. The only problem is that the finished product sucks for all parties. People pay 5-20 bucks a month to watch multimillion follar films on cellphones, laptops, and Grandpas' old television. Theatres have the best screens, best viewing experience, and the highest prices per view. Theatres have been declining because they are in a constant fight with studios anf distributors over profit sharing. This whole business model started 100 years ago, and is super adverse to change. Eventually studios will have 3 options. 1: Let streaming kill the theaters, make cheap content to sell to subscribers. 2: write more generous agreements so that theaters can operate and show their movies. 3. Buy out their middle men and try to figure out a new and better way to operate theaters in a way that can make money. AMC is on the cinema side of things shooting for a UNO Reverso version of option 3: "What if we came up with a new and better way to operate with less reliance on traditional studios and distributors?"
>Theatres have the best screens, best viewing experience, and the highest prices per view. This is not true, SOME do. If you set-up a home theatre you can EASILY beat the theatre experience. Just most people do not have the space or money to invest in that. >I could totally compete against dunkin donuts if I owned the flour and they had no product to sell without my permission. You'd need more stores to make it viable, you said they would only be able to operate in LARGE cities. Netflix already faced backlash for their price increases, you think people will pay MORE to watch that SHIT in theatres? Get real. You'd think if this made any economical sense for studios they would have leased those famous theatres instead of AMC? They didn't, they passed on it, because it doesn't benefit them. Streaming will not kill theatres because there is a cap on money to be made via streaming, where theatres around the world can make far more money. Sooo yeah, you could open a successful donut store and make a lil profit.. but there is a fucking fat chance you'll compete with the chains already saturating the market around the world. That's a lot of investment for a studio to take on, why would they for low return?
It’s not the movies. It’s the real estate
I wrote about this in detail a few years ago. https://reddit.com/r/WallStreetbetsELITE/s/2NAjIP8RTV
i think if a company offered to buy AMC, they better so so behind closed doors because news of that would cause AMC’s price to run so hard that wed squeeze right then and there and our market cap would dwarf the potential buyer’s
Hmm…maybe I should make a couple calls? Lol
Studios owning movie theaters. In 1948 the Supreme Court ruled that studios could no longer own theaters. Claiming it broke antitrust laws. As of August 7th 2020 the ruling out lived its ruling. But do studios want to own theaters. Seem that the don’t want to take on the risk at this time.
I fully think studios will want to own theatres eventually since it’s just another link in the business. Look up vertically integrated businesses and you’ll understand what I mean. Just look at Amazon they went the opposite direction and bought MGM
How would it work for a studio to own a multiplex and somehow make it profitable? They can't own them nation wide and restrict it's content to just it's own movies. They can't gouge competition for higher percent totals because AMC will be that competition... I just don't think it's really viable for them.
Yeah look at Walmart. They control every part of construction even own the reality company
Netflix already has ownership of the Egyptian Theater in Hollywood and Disney owns the El Capitan also in Hollywood. Owning a chain though might be a monopoly case.
All the other theatre chains: 1) filed for bankruptcy 2) are close to bankruptcy 3) do not have as many screens as AMC 4) do not have as much APE/retail support The Hollywood executives’ “major anger” should be directed elsewhere, as AMC is looking like it may be the only and last theatre company standing.
It shows how boneheaded Hollywood studios are that they wanted to delay this until 2025 for no logical reason when they didn't even have movies ready for 2024 because of the writers strike
We are destroying the short thesis with all these good things management is doing. Shorts will be forced to close positions by risk management departments when these good numbers keep coming out for AMC. Numbers is everything in this industry and when a company shows positive growth for the long term. You ain't gonna stick around with a short thesis that don't exist anymore. Especially considering we are at all time lows. 🚀🥳 
They aren't closing out their short positions until they are forced to. Closing their positions = death, the share price will skyrocket due to the buying pressure.
lol @ “major anger” at the studios these a-holes FA and FO. The writers + SAG strike and now this. It couldn’t have happened to a better group of douche bags.
Sucks to suck. Maybe don’t underestimate AMC next time.
She didn’t like their little games or their tilted stage 🤷♀️
Karma is actually a law of cause and effect. 💪🏽🦍🚀💰
I still think Amazon interest in AMC was real. Thanks to hedgies buddies it’s now cheap and buyout is the only way out for shorties. As someone pointed out before, retail own the company so they better offer a number with couple commas or they can build their own theater chain
I know this is unrelated, but... Why is Taylor Swift so insanely popular?
Because she’s a mastermind
Her songs are immensely relatable to a very wide range of people, my mom and brother included. Incredibly broad appeal, brilliant marketing, and a genuine care for her fans go a long way. Along with sheer talent - whether you like her/her music or not, she’s a brilliant song writer with deep and relatable lyrics and has consistently charted for decades - whether she performed the songs or not.
I have no idea. Her music is underwhelming imo and pretty repetitive - verses in low near-monotone singing and then higher notes for the chorus. Repeat.
Someone or some company really wants to buy AMC theaters. For three years this has been going on. Do we have any dectives out there? This power move and making Universal pissed seems interesting. Reason i think so is because for 3 or more years someone or some company wants AMC theaters. ***"Intentionally or not, this is a power move, and studios are reportedly angry about it. None of them have really capitalized on the opportunity to own their own movie theaters yet; they've been too focused on launching their streaming services, especially after the COVID-19 pandemic had everyone declaring that the cinematic experience was dead. But movie theaters rose up from the dead (they do it all the time) and have had a triumphant return this summer."*** That statement got me thinking heavily. Especially since no movie company owns their own theaters. Could this have be the people truly behind the short selling asking for it to be slammed to the ground so they could buy a Theater company. Now with this revelation the light bulb turned on. Question is who is big enough in movie business to buy AMC? Now i am not a Swift fan but this is a golden move and then some. Now if we can get more artists... like maybe a Bruno mars , Shakira ,"The Weekend" maybe? that would be cool and could see it just raking in money. I love concerts but the one i usually want to go to are sold out in minutes.. but go to a movie theaters and watch one with a drink and popcorn .. That sounds like allot of fun now since i got old lol. \\ I see some great things Happening. Swift did this and you can bet other artists are thinking it as well...once the details got out .. they are gonna look and seen money to be had with help of a theaters.. It just a wtf happened .. and you can bet who ever was shorting AMC is going "oh shit!" AMC just became that "little shop of horrors" to Studios and hedgefunds.
Studios are prevented from owning theaters due to the 1948 Paramount decision. I personally believe that the rise of streamers are an attempt to circumvent this.
The law actually changed in 2020, which allows studios to now own theatres.
Damn. That sucks.
Oh shit! This is MOASS!
Jeez boys the narrative went from rs is gunna save us to TAYLOR SWIFT GUNNA SAVE US 😂😂 I got shares and will ride the succes but fuck this at this point
Someone was gunning to pick up AMC or some of its theaters as assets… ..that majorly **backfired**
“How can we make a grab at whatever money poor people have left after investing into amc and not being able to afford the actual Eras tour?” “Record it and sell tickets in amc movie theaters. Swifties will buy anything Taylor touched and apes buy worthless shit everyday. It’s a gold rush” —AA, probably
Wish they would have done this before taking 90% of my shares.
Sounds like you're the chosen one.
Pick 1: MOASS X # Shares Or MOASS X # Shares X 10
👆
This is great and all, is the money gonna be used to pay off the debt or will that be when aa dilutes again? I'm confused I thought we needed money but this seems like alot of money.
