Business News - The Business Hot Moves to Watch: AMC Entertainment Holdings, Inc. (NYSE: AMC)

Well, it is official, the business news we've been hearing about for months now is the BusinessHot Move to Watch: AMC Entertainment Holdings, Inc. (NYSE: AMC). On April 13th AMC Entertainment announced it would acquire Golden Gate Investment Corporation and The Grid Group to form a "one-stop business and entertainment experience for consumers." If you haven't heard yet, this combined company will operate in 3 segments namely General, Distribution, and Entertainment.

Anni Gordon, CEO of AMC Entertainment commented: "As we accelerate our future of entertainment, this acquisition provides us with access to more innovative formats, a much broader audience, and additional funding flexibility. We look forward to adding these businesses to our existing portfolio as we build upon AMC's vision of serving consumers and communities across the nation. We are confident that this acquisition will strengthen our ability to deliver on our vision and execute against our purpose."

This move comes at a time when the theatre industry has had a tough time attracting customers due to their current strength in distribution and not much else. With the two acquisitions, AMC hopes to be able to expand its distribution into new markets that are currently unavailable or underserved.

It's important to remember that both companies have several other holdings and have multiple segments. As of right now they consist of A-List Cinemas, Century City AMC, Centennial Theatres, AMC's Sports Bar & Grille, Atlanta Film Grill, Atlanta Downtown Development Center, Centennial Place Atlanta, Georgia Movie Lovers, AMF Loews Theater, IMAX Cinemas, Liberty Village Atlanta, AMC Waterside on the Park, Westgate Atlanta, Cinefamily, Rialto Atlanta, Brookhaven, Cinemark Loews Atlanta, Arvest Bank Lakeside, Cinemark Cinemas of Norcross, Piedmont Park Atlanta, and Walton Valley Cinemas. Other holdings may also be added.

Many of the theatres mentioned above have already closed their doors, relocated, or have current locations. These theatres will remain operational, but only AMC can put together the financing and investment for them to operate in more urban areas.

It's also important to note that the newly combined company will have no oversight over AMC's current locations, but rather focus on their current strength in distribution and entertainment. The companies will work together to develop new distribution platforms that will serve as a way to reach an even wider range of consumers.

MGA will own and operate AMC, as well as control all of its revenue streams. MGA is expected to have an initial public offering later this year. They are also expected to be active in various mergers and acquisitions in the film and video game industries.

SFF Inc. will now be known as AMC Holdings. Sarah Ford, President and CEO of SFF Inc. commented: "The MGA transaction represents a transformational opportunity for AMC to create one of the most vibrant and diversified entertainment businesses in the world. We are excited to join AMC as the premier distributor of motion pictures and entertaining family entertainment experiences.