AMC Entertainment is one of the largest movie theatre chains in the world. However, the company's business has been suffering. For starters, internet video streaming services such as Netflix are putting movie theatres to the test in terms of attracting people. Furthermore, the COVID-19 pandemic has harmed the theatre industry as people attempt to avoid crowded areas. As a result, numerous theatre stocks have fallen in value, perhaps attracting acquirers looking for bargains. AMC Entertainment or another theatre network might be beneficial to Amazon.com in a number of ways. It might help Amazon.com expand the reach of its series and movies, allowing the company to make more money from its production operation. Amazon could bundle complimentary theatre tickets with a Prime subscription, increasing the service's appeal, attracting more customers, and increasing subscription revenue. Prime members pay $119 per year to gain access to a variety of benefits, including free shipping on Amazon retail purchases and video streaming. As traditional shops like Walmart enter into e-commerce, Amazon is attempting to reduce the time it takes to deliver packages to customers. If Amazon buys AMC Entertainment, it will be able to use its theatres as pickup places for its online customers. Being purchased by Amazon could help AMC Entertainment overcome its financial difficulties. Amazon. com-AMC Entertainment is one of the examples of mergers that happened around the world. Explain the type of merger between these two business organizations. Determine the economic motives of this merger as well as ONE of its effects on the cost of production.
AMC Entertainment is one of the largest movie theatre chains in the world. However, the company's business has been suffering. For starters, internet video streaming services such as Netflix are putting movie theatres to the test in terms of attracting people. Furthermore, the COVID-19 pandemic has harmed the theatre industry as people attempt to avoid crowded areas. As a result, numerous theatre stocks have fallen in value, perhaps attracting acquirers looking for bargains. AMC Entertainment or another theatre network might be beneficial to Amazon.com in a number of ways. It might help Amazon.com expand the reach of its series and movies, allowing the company to make more money from its production operation. Amazon could bundle complimentary theatre tickets with a Prime subscription, increasing the service's appeal, attracting more customers, and increasing subscription revenue. Prime members pay $119 per year to gain access to a variety of benefits, including free shipping on Amazon retail purchases and video streaming. As traditional shops like Walmart enter into e-commerce, Amazon is attempting to reduce the time it takes to deliver packages to customers. If Amazon buys AMC Entertainment, it will be able to use its theatres as pickup places for its online customers. Being purchased by Amazon could help AMC Entertainment overcome its financial difficulties.
Amazon. com-AMC Entertainment is one of the examples of mergers that happened around the world. Explain the type of merger between these two business organizations. Determine the economic motives of this merger as well as ONE of its effects on the cost of production.
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