AMC Theatres reportedly raising money to buy shuttered Arclight Cinemas

Last Updated on August 2, 2021

AMC, AMC Theatres, AMC Theaters, Arclight Cinemas, Pacific Theatres

Movie theaters are trying to make a big comeback following the toll that the pandemic put on the moviegoing industry for the last year. With A Quiet Place Part II & Cruella having a very healthy opening weekend a few days ago, movie theaters are looking to the future & AMC Theatres could very well be looking at a future where they acquire shuttered Arclight Cinemas & Pacific Theatres.

Earlier this year, it was announced that the Los Angeles Arclight Cinemas & Pacific Theatres would be closing their doors for good, including the iconic Cinerama Dome on Sunset Boulevard. While this next bit of news may upset some cinephiles who love the model that was established by Arclight, AMC Theatres could be swooping in to save them. "The Wrap" reports that AMC plans to raise $230.5 million for key acquisitions in the movie theater sector and this is when they confirmed that there are talks to acquire venues operated by the now-shuttered Arclight Cinemas & Pacific Theatres. AMC Entertainment CEO Adam Aron had this to say about the news:

"Given our scale, experience, and commitment to innovation and excellence, AMC is being presented with highly attractive theatre acquisition opportunities. We are in discussions, for example, with multiple landlords of superb theatres formerly operated by Arclight Cinemas & Pacific Theatres."

AMC plans to raise the funds via a sale of 8.5 million shares to Mudrick Capital Management. AMC raised $100 million from Mudrick back in December as part of a "debt offering for needed capital" while most of its theaters remained closed. AMC has seen a surge in their stock, but some say this could be part of the Reddit-influenced run on AMC stock, something that happened earlier this year along with GameStop stock. AMC seems confident despite the reason for the stock surge. Aron said "This transaction underscores the real value of having some authorized share capital available for us to opportunistically capitalize on shareholder value creation possibilities as and when they arise. With our increased liquidity, an increasingly vaccinated population, and the imminent release of blockbuster new movie titles, it is time for AMC to go on the offense again."

This should be good news for most moviegoers but some aren't 100% behind the idea. While AMC is the biggest movie theater chain in the U.S., many feel that it doesn't necessarily make them the best. Arclight Cinemas really catered to the moviegoer and really pushed the notion of having luxury theaters long before other chains started to pick up on the idea. Would the Arclight change much under the ownership of AMC? We'd have to wait and see but some feels changes would be in store once the acquisition happens.

Are YOU excited AMC Theatres may buy shuttered Arclight locations?

Source: The Wrap

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