Disney buying AMC?

[Disneyfan754321]

This was an interesting article.
https://www.fool.com/investing/2020/10/27/should-disney-buy-amc/
Not sure what I think... but I do miss the movies

 

[Eric Smith]

This was an interesting article.
https://www.fool.com/investing/2020/10/27/should-disney-buy-amc/
Not sure what I think... but I do miss the movies

Absolutely not. It’s a dying business, especially the way AMC does it.

 

[RanDIZ]

It’s definitely a struggling business, no doubt. When Netflix first came out and was mailing DVDs, I was an early subscriber and thought it would never last. Essentially, I was correct as far as DVDs are concerned. The company then took off by way of streaming. In the early streaming days, I was saying that one day we will be streaming new releases from our homes. COVID definitely sped up this process with theater closures. I still believe people would much rather go to a theater and have the whole experience plus the fact of just having a night out. So, hopefully they will get a life line.

Since Apple is late to the streaming game, there might be an opportunity here and it would be a minimal investment for them to acquire AMC. It might be a positive way to get their Apple TV off the ground and running by combining deals for moviegoers. They’re sitting on $196B with a “B” in cash. Time to put some of that money to work.

 

[Krandor]

There are still a lot of legal issues with somebody like Disney buying amc. Won’t happen without Legislative changes.

 

[Disneyfan754321]

I was thinking positive and maybe some old movies released in theaters

 

[Chuck S]

There was a law (I think is may have been changed) that Studios could not produce movies and own theaters. The law dated back to the days where studios would release major movies only to their own theaters.

 

[Tiki Birdland]

I believe you're thinking of the Paramount Decree. It was resended last year. Technically, Disney can buy or create a movie chain.

 

[KYMickey]

If they are one to do that it's certainly a good time to look at the possibility. All of the movie chains are losing money like mad and can probably be bought quite cheaply.

 

[Disney Bobby]

If they are laying off tens of thousands of people, they don't need to be buying anything.

 

[skeeter31]

If they are laying off tens of thousands of people, they don't need to be buying anything.

While the layoffs are sad, Disney absolutely should be looking into purchases that would bring in more revenue.

 

[Dutch Inn '76]

If they are laying off tens of thousands of people, they don't need to be buying anything.

That sounds nice on the face of it, but it doesn't work like that.

 

[maverik85]

With them struggling themselves financially right now, and stating that they are going to put their focus on streaming for the near future I don't see them buying a theatre chain. Could possibly see them buying out the theatres themselves at their Downtown Disneys but don't see them going for an entire chain.

 

[cheryllarsen]

I don't see it!

 

[cheryllarsen]

Theaters were already a dying industry.

 

[WorldOfPooh]

I don't see why a company that is in so much trouble due to the pandmeic should buy an obsolete business that is also struggling because of the pandemic. Instead of sinking more money down the hole they should pay and keep their current employees.

 

[doombuggy]

It’s definitely a struggling business, no doubt. When Netflix first came out and was mailing DVDs, I was an early subscriber and thought it would never last. Essentially, I was correct as far as DVDs are concerned.

Actually, they DO still send out DVDs. I just put one in the mail to them today...

 

[YesterDark]

I think they should. We'll be going back to the movies at some point in our lives in the next 12-18 months. Disney owning all that realestate will just help build their brand AND increase the revenue share of their $1-2 billion movies.

Plus, if the model is profitable, you can basically open up a Disney Store in every location and sell merch. You though they were good at selling merch when you came off a ride? Imagine the sales if Disney could sell them merch coming out of seeing the latest Princess movie for the first time. Current theatres really only make money off of concessions. Disney could add merch sales to those numbers.

Hell, you can add a second tier Disney+ subscription that gives you access to X movies per year. Tie both of those properties together.

Just say'in. Could be a money maker for them.

 

[afan]

I think they should. We'll be going back to the movies at some point in our lives in the next 12-18 months. Disney owning all that realestate will just help build their brand AND increase the revenue share of their $1-2 billion movies.

Plus, if the model is profitable, you can basically open up a Disney Store in every location and sell merch. You though they were good at selling merch when you came off a ride? Imagine the sales if Disney could sell them merch coming out of seeing the latest Princess movie for the first time. Current theatres really only make money off of concessions. Disney could add merch sales to those numbers.

Hell, you can add a second tier Disney+ subscription that gives you access to X movies per year. Tie both of those properties together.

Just say'in. Could be a money maker for them.

And sell Mickey bars and dole whips.

 

[PortMickey]

I think they should. We'll be going back to the movies at some point in our lives in the next 12-18 months. Disney owning all that realestate will just help build their brand AND increase the revenue share of their $1-2 billion movies.

Plus, if the model is profitable, you can basically open up a Disney Store in every location and sell merch. You though they were good at selling merch when you came off a ride? Imagine the sales if Disney could sell them merch coming out of seeing the latest Princess movie for the first time. Current theatres really only make money off of concessions. Disney could add merch sales to those numbers.

Hell, you can add a second tier Disney+ subscription that gives you access to X movies per year. Tie both of those properties together.

Just say'in. Could be a money maker for them.

EXACTLY! A Disney branded Theater would be a gold mine!

When the Pandemic is over, people will want to go back and enjoy the Theater experience. Disney needs the Theater model to make the big budget Blockbuster (Marvel/Star Wars/Princess) movie model work. If they own the theaters, they can show their movies exclusively and they can keep ALL those profits, plus all the merchandise and mickey bars. In the off weeks they can bring back popular classics out of the "vault" to show on the big screen. A tie in with Disney+ subscribers is brilliant. They could drive more traffic and engagement with new and classic brands. Exclusive limited merchandise to match the "Vault" properties available only at Disney theaters. All knid of tie in with Disney+ subscribers club. Who wouldn't want to have there birthday party there!

 

[Disneyfan754321]

EXACTLY! A Disney branded Theater would be a gold mine!

When the Pandemic is over, people will want to go back and enjoy the Theater experience. Disney needs the Theater model to make the big budget Blockbuster (Marvel/Star Wars/Princess) movie model work. If they own the theaters, they can show their movies exclusively and they can keep ALL those profits, plus all the merchandise and mickey bars. The tie in with Disney+ subscribers is brilliant and would drive more traffic and engagement with the brand and sell more merch.

Wow we could get a small Disney fix at home