UK's Cineworld Reportedly Eyes IPO Or Merger With AMC Or Cinemark: Retail Isn't Biting Yet

Shares of AMC Entertainment Holdings, Inc. (AMC) and Cinemark Holdings, Inc. (CNK) could be in the spotlight after a report said U.K. theater chain Cineworld Group is considering strategic options, including a potential merger with either of the U.S. peers.

Cineworld is planning to appoint JPMorgan Chase & Co. and Barclays to advise it regarding an initial public offering (IPO) or a merger with AMC or Cinemark, Bloomberg reported. 

The movie chain became the world’s second-largest following its 2017 acquisition of U.S.-based Regal Entertainment Group.

The report said an IPO could exclude Cineworld’s UK business, which it hopes to sell separately.

The company emerged from Chapter 11 bankruptcy in mid-2023, nearly 11 months after filing for it. Around that time, its London Stock Exchange-listed shares were delisted. 

According to Bloomberg, Cineworld is eyeing a timeline between the second half of 2025 and the first half of 2026 for the IPO. The timing would depend on the company’s performance and market performance.

The report said a potential combination of AMC, the world’s biggest movie chain, could pose regulatory challenges due to antitrust concerns.

Incidentally, AMC also faced a bankruptcy threat after theater closures during the COVID-19 pandemic impacted its fundamentals. 

Last week, Cinemark reported record revenue for the December quarter, citing better-than-expected industry performance, operational execution and strategic initiatives. The company also reinstated its dividend. But an earnings miss dented investor sentiment.

Retail users on Stocktwits weighed in on the rumors of a Cineworld buy by either AMC or Cinemark.

A watcher said they don’t see the possibility of Cinemark buying its U.K. peer. “They are doing just fine as is,” they said.

Another user commented on the AMC stream that the Adam Aron-led company wasn’t merging with any other or is being pursued by Amazon.

AMC is scheduled to report its fourth-quarter results after the market closes on Tuesday. Investors may focus on the earnings release and management commentary on the earnings call regarding the way forward. 

AMC stock is down about 14% so far this year, and Cinemark stock has lost a more modest 11.4%.

For updates and corrections, email newsroom[at]stocktwits[dot]com. 

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