Film-Tech Forum ARCHIVE: AMC and Loews?

This is topic AMC and Loews? in forum Ground Level at Film-Tech Forum ARCHIVE.

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Posted by Bryan Fournier (Member # 264) on 11-16-2003, 11:17 PM:

Any truth to the rumor AMC may be trying to aquire Loews Cineplex. Seems logical in an attempt to compete with Regal.

Posted by Dennis Benjamin (Member # 1137) on 11-17-2003, 11:32 AM:

Hmmm. Interesting - I heard this same rumor yesterday.....

Posted by Steve Guttag (Member # 268) on 11-17-2003, 12:42 PM:

I've heard the same rumor...I don't think it will pass muster in terms of anti-trust...heck the Ziegfeld in New York was a casulty of the last merger on the Cineplex front of Loews and Cineplex. AMC just aquired GCC...

Things are bad enough with LCE, REG and AMC dominating the industry...do they really need to compete less?

Steve

Posted by Robert D. LaValley (Member # 1867) on 11-17-2003, 02:32 PM:

I heard that Regal was in the process of trying to merge with Cinemark but Hollywood was pressing th government to stop this from happening becuase Regal would then have all the power to play whatever they wanted in the US. Major major Monopoly.

Why wouldn't AMC be let to merge with loews? Regal has more screens anyway.. so they wouldn't be a total monopoly.. they still have competion.. Now if AMC merged with Regal.. that could be interesting.

Eventually Regal will just own everything. *laughs*

Posted by Franklin Armstrong (Member # 1448) on 11-17-2003, 05:14 PM:

the rumor i heard it as "Loews Cineplex may be trying to aquire AMC".

Posted by Martin Brooks (Member # 1269) on 11-17-2003, 05:34 PM:

I was going to write that this would never pass muster in NYC, but there are only two AMC theaters in NYC - the AMC Empire 25 on 42nd St and the Bay Plaza 13 in the Bronx. There are no Loews Cineplex theaters in the Bronx. The Attorney General might have a problem with Loews owning both sides of the street on 42nd St., but they could always sell off the Loews E-Walk 13 to keep the AMC 25 across the street.

When Loews merged with Cineplex Odeon, they were forced to sell a group of theaters to what became Clearview. With the exception of the 34th St Showplace, all of the theaters sold to Clearview were formerly Cineplex-Odeon theaters. Five of those theaters (10 screens) that went to Clearview are now closed: 59th St East, Olympia Twin, Waverly Twin (soon to be an IFC 3), Park & 86th Twin and the 34th St. Showplace Triplex.

Since the merger of Regal and UA was permitted, I don't see anyone stopping AMC and Loews from merging.

Posted by Darryl Spicer (Member # 711) on 11-17-2003, 06:53 PM:

quote:
I heard that Regal was in the process of trying to merge with Cinemark but Hollywood was pressing th government to stop this from happening becuase Regal would then have all the power to play whatever they wanted in the US. Major major Monopoly.

I dougt that is anywhere near true. Cinemark will not merge with anyone unless they have control over what goes on in the home offices. And the issues of domination in markets with one company would definently be an issue in some areas.

Posted by Bobby Henderson (Member # 840) on 11-17-2003, 07:39 PM:

Isn't Cinemark one of the few "profitable" circuits? Why would they have any need to merge with anyone? It seems like they kick quite a lot of ass in the markets they move into (such as their takeover of the Colorado Springs market).

Well, at least Cinemark was in the black the last time I checked (when all those other circuit bankruptcies were getting filed --such as AMC, Carmike, etc.).

Posted by Zach Zagar (Member # 379) on 11-18-2003, 12:18 AM:

I may be way wrong, but I thought Cinemark filed first, and that would be why they got out of bankruptcy first.

Also, did AMC ever file? I don't recall hearing that.

Posted by Dustin Mitchell (Member # 372) on 11-18-2003, 12:22 AM:

Carmike was the first major to file. I'm not sure if they were the first to emerge from bankruptcy though.

Posted by Paul Konen (Member # 41) on 11-18-2003, 08:49 AM:

Cinemark never filed during that spell. The company tightened the belts on the theatres by TWO notches. Labor, expenses were watched very carefully.

Of course, customer service took a hit but the company made out fairly well.

Posted by Charles Everett (Member # 889) on 11-18-2003, 06:06 PM:

A big puzzlement if you ask me. AMC is committed to megaplexes while Loews has a number of smaller-yet-profitable multiplexes.

AMC did try to build opposite Loews in New Jersey but backed off. That particular Loews is at the huge Jersey Gardens outlet mall in Elizabeth -- and it's come into its own after a slow start.

The way things are right now I see an AMC-Loews union as blowing smoke. Just like whatever hype is passed to Liz Smith for her newspaper column.

Posted by Jonathan M. Crist (Member # 413) on 11-18-2003, 06:28 PM:

Lawerence Tisch the head of Lowe's died over the past weekend. I can imagine his estate may be ready to sell.

Posted by Darryl Spicer (Member # 711) on 11-18-2003, 07:04 PM:

Did he have controling stock because the last I heard Sony still held principle stock unless that has changed when the Loews cineplex merger took place.

Posted by Daryl C. W. O'Shea (Member # 1303) on 11-18-2003, 07:34 PM:

Onex (Canada's 4th largest company) has 51% ownership and 97% voting rights in the Loews Cineplex Group.

Onex took ownership of Loews in 2001 by paying off their debt and restructuring the company to get it out of chapter 11.

The AMC - Loews rumours have been going around for a few weeks, so they likely aren't based on Tisch's recent passing. It's more likely they are based on somebody's speculation inspired by the recently announced (early October) spin-off of Cineplex Odeon Corporation and Galaxy Entertainment.

Posted by Paul Konen (Member # 41) on 11-19-2003, 12:37 PM:

Here's the latest:

KANSAS CITY, Mo.--(BUSINESS WIRE)--Nov. 19, 2003--AMC Entertainment Inc. (AMEX:AEN - News), one of the world's leading theatrical exhibition companies, confirmed today that it is engaged in preliminary discussions with Loews Cineplex Entertainment Corporation about a possible business combination.
No assurances can be given that an agreement between the parties can be reached or, if an agreement is reached, that any such transaction will be completed. The Company does not intend to make any further public announcement concerning this possible transaction unless and until a definitive agreement has been signed or discussions have been terminated.

AMC Entertainment Inc. is a leader in the theatrical exhibition industry. Through its circuit of AMC Theatres, the Company operates 232 theatres with 3,507 screens in the United States, Canada, France, Hong Kong, Japan, Portugal, Spain, Sweden and the United Kingdom. Its Common Stock trades on the American Stock Exchange under the symbol AEN. The Company, headquartered in Kansas City, Mo., has a website at www.amctheatres.com.

Any forward-looking statements contained in this release, which reflect management's best judgment based on factors currently known, involve risks and uncertainties. Actual results could differ materially from those anticipated in the forward-looking statements included herein as a result of a number of factors, including among others the Company's ability to enter into various financing programs, the performance of films licensed by the Company, competition, construction delays, the ability to open or close theatres and screens as currently planned, domestic and international political, social and economic conditions, demographic changes, increases in demand for real estate, changes in real estate, zoning and tax laws, unforeseen changes in operating requirements, the Company's ability to identify suitable acquisition candidates and to successfully integrate acquisitions into its operations and results of significant litigation.

--------------------------------------------------------------------------------
Contact:
AMC Entertainment Inc.
Richard J. King, 816-221-4000

Posted by Sean McKinnon (Member # 612) on 11-19-2003, 05:47 PM:

From what I hear this rumor could be very very true...

Posted by Darren Crimmins (Member # 1116) on 11-19-2003, 05:53 PM:

"Of course, customer service took a hit but the company made out fairly well."

Because that is what really counts. [Mad]

Posted by Adam Martin (Member # 641) on 11-19-2003, 09:28 PM:

quote:
AMC Entertainment Inc. Confirms Preliminary Discussions

KANSAS CITY, Mo. (November 19, 2003)--AMC Entertainment Inc. (AMEX: AEN), one of the world's leading theatrical exhibition companies, confirmed today that it is engaged in preliminary discussions with Loews Cineplex Entertainment Corporation about a possible business combination.

No assurances can be given that an agreement between the parties can be reached or, if an agreement is reached, that any such transaction will be completed. The Company does not intend to make any further public announcement concerning this possible transaction unless and until a definitive agreement has been signed or discussions have been terminated.

AMC Entertainment Inc. is a leader in the theatrical exhibition industry. Through its circuit of AMC Theatres, the Company operates 232 theatres with 3,507 screens in the United States, Canada, France, Hong Kong, Japan, Portugal, Spain, Sweden and the United Kingdom. Its Common Stock trades on the American Stock Exchange under the symbol AEN. The Company, headquartered in Kansas City, Mo., has a website at www.amctheatres.com.

Any forward-looking statements contained in this release, which reflect management's best judgment based on factors currently known, involve risks and uncertainties. Actual results could differ materially from those anticipated in the forward-looking statements included herein as a result of a number of factors, including among others the Company's ability to enter into various financing programs, the performance of films licensed by the Company, competition, construction delays, the ability to open or close theatres and screens as currently planned, domestic and international political, social and economic conditions, demographic changes, increases in demand for real estate, changes in real estate, zoning and tax laws, unforeseen changes in operating requirements, the Company's ability to identify suitable acquisition candidates and to successfully integrate acquisitions into its operations and results of significant litigation.

Contact:
Richard J. King, Senior Vice President, Corporate Communications
AMC Entertainment Inc.
(816) 221-4000

Posted by Daryl C. W. O'Shea (Member # 1303) on 11-19-2003, 09:32 PM:

Wow, that article looks a lot like the one posted here.

Posted by Adam Martin (Member # 641) on 11-20-2003, 05:00 AM:

So it does ... Paul needs to stop copying my ideas before I get them. [Smile]

Posted by Dean Kollet (Member # 1789) on 11-25-2003, 08:54 AM:

quote:
Also, did AMC ever file? I don't recall hearing that.

I don't think they did, I work at one here in Tallahassee, and my manager(s) told me that we didn't b/c we have revenue from NCN (an AMC-owned company) that helped us when times got shitty...

Posted by Daryl C. W. O'Shea (Member # 1303) on 01-23-2004, 12:19 AM:

http://www.reuters.com/newsArticle.jhtml?type=industryNews&storyID=4190436

quote:
AMC Says Merger Talks with Loews Cineplex End
Thu January 22, 2004 05:31 PM ET

LOS ANGELES (Reuters) - Movie theater operator AMC Entertainment Inc. on Thursday said it has ended talks with Loews Cineplex Entertainment Corp. about a possible merger.
AMC did not offer any details about why the talks ended. The two sides said they were in talks in mid-November about a combination that would have created one of the largest theater chains in the country.

Reuters/VNU

Posted by Robert D. LaValley (Member # 1867) on 01-23-2004, 04:30 AM:

Washington decided to step in and let microsoft by AMC, loews, cinemark, and any other chain that regal doesn't own yet. [Eek!]