The United States has a lot going on right now. Drama? You bet. Hypocrisy? Definitely. Abuse? More than one could possibly imagine. Of course, most countries deal with these sorts of problems, but it has become so publicized in the U.S. that most of our focus goes towards what is going on there. From Donald Trump to Larry Nassar to Tesla (NASDAQ:TSLA), who just recently announced that it forecasts there will be even more Model 3 delays, the United States has a very tense atmosphere surrounding it right now.
The above mentioned aside, we can’t leave out all of the drama going on between MoviePass, a New York-based subscription movie ticketing service and AMC Entertainment Holdings (NYSE:AMC), a movie theater chain that was founded in the 1920s.
What’s Happening?
Both MoviePass and AMC Entertainment Holdings have been at each other’s throats for the past couple of months. However, today, Friday, January 26, things took another turn for the worst.
For those who don’t know, it could be argued that MoviePass has resurrected the movie theater business over the course of the past six months. Being a $10-a-month subscription service, MoviePass has sparked an interest once again in actually going to the movie theater to catch a film, which, for a while, seemed like it was a dying trend.
Sounds like it would be good news, right? Wrong. As a result, MoviePass has a number of targets on its back now, one of which includes AMC Entertainment Holdings. The tension between the two companies started after MoviePass failed its efforts to enter into a partnership with AMC Entertainment.
From my own perspective, I can see why AMC Entertainment turned down an offer to enter into a partnership with MoviePass. Logistically it makes sense, but not everything that makes senses ends up being positive. This is one of those cases.
AMC Entertainment is starting to see the downside to rejecting the offer, especially today after MoviePass stated on Thursday that it has cut all ties with the movie theater chain. Additionally, MoviePass said that it is ready to “battle” with AMC.
After news broke of this severe of ties, AMC Entertainment Holdings started trading lower. With a market capitalization of less than 2 billion, AMC Entertainment is currently trading at $12.75, putting the AMC stock down $0.40, or 3.04%.
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