AMC sells stake in Saudi Arabia joint venture, shifts to licensing partnership

Almost five years after AMC Entertainment Holdings Inc. began screening movies in Saudi Arabia, the movie theater chain and meme-stock darling is selling its stake in its joint venture in the kingdom.

The company is also transitioning to a licensing relationship with Saudi Cinema Company, the joint venture it set up with Saudi Entertainment Ventures.

The agreement means that AMC

will shift from a management and investment role in the SCC to a pure licensing partnership. Under the terms of the deal, the current 13 AMC locations in Saudi Arabia operated by Saudi Cinema Company will continue to use the AMC brand and other IP.

See Now: AMC’s APE conversion a ‘massive’ opportunity to wipe out debt and drive expansion, says analyst

On Tuesday AMC also announced that Saudi Entertainment Ventures has bought out the company’s stake in SCC, with repayment of AMC’s investment of $30 million.

AMC’s stock rose 1.6% before market open.

“Our plan all along was to transition our now 13 Middle East theatres to local management, after we trained them and opened beautiful theatres,” tweeted AMC CEO Adam Aron Tuesday. “They still will operate as AMC Cinemas. Plus we sold our 10% stake for $30 million, continuing to build our cash reserves. Cash is king!”

Also read: It’s National Popcorn Day — and AMC’s CEO is all over it

AMC has played a key role in the return of movie screenings to Saudi Arabia. On April 18, 2018, AMC hosted the country’s first moving screening since the 1980s, at King Abdullah Financial District in Riyadh, the company said, in a statement.

The company’s stock has fallen 51.6% in the last 12 months, compared with the S&P 500 Index’s

decline of 11%.

Source link


Jacob Keiter is a husband, a writer, a journalist, a musician, and a business owner. His journey to becoming a writer was one that was paved with challenges, but ultimately led him to find his true calling. Jacob's early years were marked by a strong desire for creative expression. He was always drawn to music, and in his youth, he played in several bands, chasing the elusive promise of fame and success. However, despite his best efforts, Jacob struggled to find the recognition he craved. It wasn't until he hit a low point in his life that Jacob discovered his love for writing. He turned to writing as a form of therapy during a particularly difficult time, and found that it not only helped him to cope with his struggles, but also allowed him to express himself in a way that he had never been able to before. Jacob's writing skills quickly caught the attention of others, and he soon found himself working as a journalist for The Sun out of Hummelstown. From there, he went on to contribute to a variety of publications, including the American Bee Journal and Referee Magazine. Jacob's writing style is reflective of traditional journalism, but he also infuses his work with a unique voice that sets him apart from others in his field. Despite his success as a writer, Jacob also owns another business, JJ Auto & Home, which specializes in cleaning. Jacob's commitment to excellence is evident in all of his endeavors, whether it be in his writing or in his business ventures. Today, Jacob is the author of two books and continues to inspire others through his writing. His journey to becoming a writer serves as a reminder that sometimes our darkest moments can lead us to our greatest achievements.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *