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Topic: AMC Buys Carmike

Martin McCaffery
Film God

Posts: 2481
From: Montgomery, AL
Registered: Jun 99

posted 03-03-2016 06:21 PM

Did not see that coming:

quote:
AMC Entertainment has acquired Carmike Cinemas, in a $1.1 billion deal that makes the exhibitor the largest theater chain in the United States and in the world.

Regal Entertainment, with 7,361 screens, was previously the largest domestic distributor.

The move comes following a record year for ticket sales, with the domestic market passing $11 billion in revenue for the first time in history. Industry-wide, however, attendance remains relatively flat, and the theater business faces challenges from the growing popularity of streaming services and video games, as well as a rise in quality television programming.

AMC has moved aggressively to counter those challenges by installing recliners, expanding its menu options, and offering alcohol service at certain locations. The company also underwent a management shift in recent months. In December, the company tapped Adam Aron, former CEO of Starwood Hotels & Resorts, to take over from Gerry Lopez, who left AMC last summer to run hotel chain Extended Stay America.

Headquartered in Columbus, Ga., Carmike was the fourth largest movie theater company in the country, with 2,917 screens in 41 states.

Variety

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Monte L Fullmer
Film God

Posts: 8367
From: Nampa, Idaho, USA
Registered: Nov 2004

posted 03-03-2016 06:51 PM

I was always wondering on how Carmike stayed in business with all of the ups and downs they had in the past.

True though .. quite the shocker.

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Martin McCaffery
Film God

Posts: 2481
From: Montgomery, AL
Registered: Jun 99

posted 03-03-2016 07:09 PM

Well, they did go bankrupt a few times.

It's going to be interesting here as Carmike owns the newer multiplex and AMC has done a horrible job running the RAVE they bought just to get it's foot into Alabama. They turned it into a discount dump.
Assuming the purchase is allowed, AMC will be all over the South, so I'm betting the Rave will be closed down soon after the transition.

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Scott D. Neff
Theatre Dork

Posts: 919
From: San Francisco, CA
Registered: Oct 1999

posted 03-03-2016 07:11 PM

I did not see this coming either. Though perhaps we should have? With AMC reclinering the crap out of old plexes everywhere, it doesn't seem to be a bad idea. I just hope this puts an end to Carmike's "buy you snacks from the ticket taker" concept.

I can't wait to see what they have to divest. Though truly now it will be just like three friends trading baseball cards. "Hey Regal, we'll give you this Carmike'd Rave in Alabama for your old UA in Mississippi."

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Aaron Garman
Phenomenal Film Handler

Posts: 1470
From: Toledo, OH USA
Registered: Mar 2003

posted 03-03-2016 07:57 PM

I wonder if this means any Carmikes are gonna get Sony'd?

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Steve Wilson
Expert Film Handler

Posts: 109
From: Paoli, IN, USA
Registered: May 2004

posted 03-03-2016 08:24 PM

This is the kind of thing the US Government should put a stop too and may very well do! The is too much of a Monopoly to allow to happen, although they have allowed in the airlines and we see where their high prices are due to the lack of competition.

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Martin McCaffery
Film God

Posts: 2481
From: Montgomery, AL
Registered: Jun 99

posted 03-03-2016 08:42 PM

Throw in AMC owned by the Chinese and you have a potential campaign issue [Wink]

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Jim Cassedy
Phenomenal Film Handler

Posts: 1661
From: San Francisco, CA
Registered: Dec 2006

posted 03-03-2016 09:16 PM

So let's see if I understand this- - (which I dont) :

Here in San Francisco, AMC used to run & own the "Kabuki 8 Cinemas"
a popular theater in the Japantown district.

Robert Redford's "Sundance Cinemas" acquired the "Kabuki 8" in
2006 when the government forced AMC to sell it in an anti-trust
settlement agreement which then allowed AMC to acquire Lowes.

Last November, Carmike bought the Sundance Cinema chain, which
includes The Kabuki.

So now, if AMC acquires Carmike, I guess that means they will
own the Kabuki again which they were forced to sell in the first place?

Wow- Whatta convoluted corporate conundrum !

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Sam Graham
AKA: "The Evil Sam Graham". Wackiness ensues.

Posts: 1431
From: Waukee, IA
Registered: Dec 2004

posted 03-03-2016 10:16 PM

I don't think there will be that much to divest. Carmike largely operates in smaller markets no one else would bother with. That was their whole business model for years.

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Bobby Henderson
"Ask me about Trajan."

Posts: 10973
From: Lawton, OK, USA
Registered: Apr 2001

posted 03-03-2016 10:44 PM

I don't think this is good news for my town.

AMC recently bought Starplex Cinemas, a regional chain who was the latest owner of Lawton's 1st run 12-plex theater in Central Mall. Dickinson originally built it 15 years ago, squeezing it into a cramped, single story space. The screens were tiny and not so great.

Carmike recently opened its new 13-plex here in town. I was hoping once AMC took over the mall theater it might try to compete directly with Carmike by closing down the mall theater and building a bigger, better multiplex downtown. Now that AMC is going to have both of the 1st run sites in Lawton they'll have no incentive to improve anything.

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Joe Redifer
You need a beating today

Posts: 12859
From: Denver, Colorado
Registered: May 99

posted 03-04-2016 12:22 AM

With this news, I am having a very difficult time containing my apathy.

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Marcel Birgelen
Film God

Posts: 3357
From: Maastricht, Limburg, Netherlands
Registered: Feb 2012

posted 03-04-2016 12:40 AM

Wanda Group (the owner of AMC) also recently bought Legendary Entertainment, known for e.g. the latest Batman trilogy.

They seem to be very determined in getting a stronghold in international entertainment markets.

Welcome your future Chinese overlords, first they got your jobs, now they're rapidly going after the rest too. Hey, let's borrow some more from them while they're at it...

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Buck Wilson
Jedi Master Film Handler

Posts: 894
From: St. Joseph MO, USA
Registered: Sep 2010

posted 03-04-2016 12:49 AM

Holy actual fuck..... This is literal insanity.

Wonder what Regal will buy to get back on top....

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Lyle Romer
Phenomenal Film Handler

Posts: 1400
From: Davie, FL, USA
Registered: May 2002

posted 03-04-2016 05:16 AM

quote: Buck Wilson
Wonder what Regal will buy to get back on top....

AMC?

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Martin McCaffery
Film God

Posts: 2481
From: Montgomery, AL
Registered: Jun 99

posted 03-04-2016 08:01 AM

quote: Sam Graham
I don't think there will be that much to divest. Carmike largely operates in smaller markets no one else would bother with. That was their whole business model for years.

You forgot the other half of their business model. Every few years, buy up other chains, over expand, go bankrupt. Repeat as necessary,

Let's see if they infect AMC.

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