Movie Theater Chains's Shares Tumble on Warner Bros. Streaming Move
December 03 2020 - 3:25PM
Dow Jones News
By Kimberly Chin
Shares of movie theater chains fell on Thursday after AT&T
Inc.'s Warner Bros.'s decision to release its entire 2021 slate of
theatrical films in theaters and on its HBO Max platform at the
same time.
AMC Entertainment Holdings Inc. and National CineMedia Inc.'s
shares declined 14% to $3.72 and 7% to $3.69, respectively.
Warner Bros.'s move represents a significant step in erasing the
exclusivity theater chains have enjoyed for decades and comes at a
time when movie theater chains are struggling due to a dearth in
revenue from Covid-19-related restrictions. Theater chains are
facing capacity restrictions that are limiting ticket sales and
major Hollywood movies are being delayed or sent straight to
streaming.
On Thursday, AMC, the world's largest movie theater chain, said
it has launched efforts to sell more than $800 million worth of
stock and warned that failing to raise enough liquidity might force
the company into bankruptcy.
Write to Kimberly Chin at kimberly.chin@wsj.com
(END) Dow Jones Newswires
December 03, 2020 15:10 ET (20:10 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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