What happened
Actions of AMC Entertainment Holdings (NYSE: AMC) have been on a wild ride: from closing during the pandemic, to becoming a favorite of the WallStreetBets forum, to announcing the progress of the reopening. Shares jumped again on Monday, with stocks up almost 22% at 11 am EDT.
And
Today brought news of the company on two fronts. First, the Dalian Wanda Group, the Chinese controlling shareholder, gave up majority control, although it is still the largest shareholder in the company. But perhaps more related to stock movement, the company announced that it is starting to reopen its cinemas in the important Los Angeles market today.
Image source: Getty Images.
What now
The struggling theater operator raised capital to keep it afloat until business resumed. Now this is happening and investors are showing approval. The company’s locations in Burbank and Century City, Los Angeles County, are reopening this afternoon. And AMC is planning to open all 23 remaining movie theaters in Los Angeles starting March 19. In addition, pending approval from local authorities, the company said it expects all 53 locations in California to be open by March 19.
“The reopening of theaters in Los Angeles County and throughout California is an important occasion for AMC theaters, for our guests, for our associates, for our studio partners,” said AMC CEO and President Adam Aron in an announcement. He noted that the Los Angeles market is almost double that of the New York market. Being physically close to film production studios is also symbolically significant.
Investors are rooting for both the progress of the reopening and the fact that shareholders are now able to vote significantly on their shares, rather than controlling the former owner.
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