By Michelle Chapman, AP Business Writer
The movie theater chain AMC is raising $230.5 million through an 8.5 million share sale, cashing in on the meme stock frenzy that has sent its stock price up more than 1,100% this year.
Theaters and other beleaguered industries like restaurants and concert venues are anticipating the return of crowds over the next few months with the massive U.S. vaccination effort ongoing.
John Krasinski's thriller sequel "A Quiet Place Part II" opened over the Memorial Day weekend to a pandemic-best $48.4 million, according to studio estimates Sunday.
All of Hollywood was watching those numbers for hints about what is in store for the delayed summer movie season. After largely sitting out the pandemic, or diverting to streaming platforms, a lineup of blockbusters are again queuing up. On tap are Warner Bros.' "In the Heights," Universals' "F9" and Disney's "Black Widow."
"With our increased liquidity, an increasingly vaccinated population and the imminent release of blockbuster new movie titles, it is time for AMC to go on the offense again," said AMC CEO Adam Aron said in a prepared statement Tuesday.
But AMC is part of a Wall Street phenomenon that began this year pitting larger, institutional hedge funds against a cadre of online investors. Companies like GameStop and AMC have been shorted by hedge funds and other big investors, a bet that stock in the company will fall.
Smaller investors have instigated a "short squeeze" against those funds, pouring money into shares of those companies until larger funds are forced to sell off shares to cover money borrowed to buy them.
Shares of GameStop, another so-called meme stock, are also up more than 1,000% this year. That company took advantage of that price shift and sold 3.5 million of its shares in April.
AMC said Tuesday that the company will use proceeds from its share sale to invest in new leases and on improvements in existing theaters.
Shares of AMC Entertainment Holdings Inc., based in Leawood, Kansas, jumped more than 21% before the opening bell.
Avid completes acquisition of Wolftech
Avid®, known for software solutions for professional media production, has completed the acquisition of Wolftech Broadcast Solutions, a leader in cloud-based multiplatform news planning, production and publishing solutions.
The acquisition enables Avid to combine its digital-first, end-to-end media solution with Wolftech’s expertise in story-centric workflow management. News organizations will be able to increase efficiency and accelerate story delivery through enhanced remote collaboration and multiplatform amplification.
Avid CEO Wellford Dillard stated, “Wolftech is unquestionably on the leading edge of where the industry is going, and this acquisition demonstrates Avid’s commitment to transform news, sports, and live production workflows. We are delighted to welcome Wolftech into the Avid family.”
Wolftech CEO Arne Berven added, “We were focused on finding a partner that could accelerate the adoption of our platform globally. We explored a number of possibilities, but when we talked to Avid, we knew it was the right match.”
The closing of the acquisition follows Avid’s announcement on October 7 that the company had entered into a definitive agreement to acquire Wolftech.
With this acquisition, Avid deepens the integration between the two toolsets while continuing to embrace an open approach in partnering with a wide range of media production tools and newsroom systems. Existing Wolftech customers will benefit from Avid’s global scale for customer support and professional services.
Ian Axton, head of production operations for ITV News, said, “As a customer of both Avid and Wolftech we’re excited about the benefits this acquisition will bring to our users and our business. Wolftech has transformed... Read More