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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