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» Cinematour Forum   » Cinemas in the News   » AMC merging with Loews Cineplex (Page 1)

 
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Author Topic: AMC merging with Loews Cineplex
John Robert
Member

Posts: 135
From: Addison, TX
Registered: Jan 2005


 - posted June 21, 2005 07:33 AM      Profile for John Robert   Email John Robert         Edit/Delete Post 
Reuters article

The merger will result in 5900 screens in 450 theater locations.

quote:
AMC to buy Loews Cineplex

NEW YORK (Reuters) - AMC Entertainment Inc., the No. 2 U.S. movie theater chain, on Tuesday said it will buy its next-largest competitor, Loews Cineplex Entertainment Corp., to challenge market leader Regal Entertainment Group .

The U.S. movie theater sector has been a hot spot of acquisition activity over the past year-and-a-half, and AMC and Loews are no strangers to each others' businesses -- the two rivals held unsuccessful merger talks early last year.

After that round of talks failed, private equity investors J.P. Morgan Partners and Apollo Management agreed to buy AMC for $1.67 billion last July.

Terms of Tuesday's deal were not disclosed, but later that same month fellow private equity players Bain Capital, the Carlyle Group and Spectrum Equity Investors agreed to buy Loews Cineplex from another buyout investor for $1.5 billion.

AMC's investor group will retain a 60 percent stake in the new company, which will keep the AMC Entertainment name, while the Loews investor group will own the remainder.

The deal will consolidate AMC's already formidable presence in large, urban markets. AMC is known for its huge movie complexes -- nearly three-quarters of its screens are located in "megaplexes" that have 14 or more movie screens -- and a large number of its theaters are located in California, Florida and Texas.

Most of Loews' theaters are in major metropolitan markets. The company lays claim to the biggest share of the market in New York City, Chicago, Detroit and Mexico City.

Once the deal is completed, the new AMC Entertainment will have about 5,900 movie screens in 450 theaters and be run by AMC Chairman and Chief Executive President Peter Brown.

AMC rival Regal Entertainment, which operates Regal Cinemas, United Artists Theatres and Edwards Theatres, has more than 6,200 screens in more than 550 locations and has theaters spread more broadly across suburban areas.

The longest film industry box-office slump in 20 years cast a shadow over the deal, however. Movie ticket sales just posted their 17th straight weekend of year-on-year declines, and even big-budget films "Star Wars" and "Batman Begins" have been unable to stem the losses.

AMC and Regal announced in March a plan to combine their on-screen advertising businesses into a company called National CineMedia, which will market and sell movie theater advertising and book theaters for non-movie events.

AMC and Loews expected the deal to close within six to nine months. At the end of 2004, Loews had $1.75 billion of total assets and $1 billion in total debt, according to a filing with the Securities and Exchange Commission.



[ June 21, 2005, 05:56 PM: Message edited by: Adam Martin ]

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Ron Newman
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Posts: 145
From: Somerville, MA
Registered: Jan 2005


 - posted June 21, 2005 10:12 AM      Profile for Ron Newman   Email Ron Newman         Edit/Delete Post 
Will anti-trust rules require the combined company to divest theatres in markets where both now operate? Boston, for instance, now has only two theatres -- one Loews, one AMC.

What will the combined company be called?

Will the combined company try to shed its older theatres (presumably mostly Loews)?

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Chris Utley
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From: Torrance, CA
Registered: May 2003


 - posted June 21, 2005 03:44 PM      Profile for Chris Utley   Author's Homepage   Email Chris Utley         Edit/Delete Post 
In addition to the Boston situation, AMC will find themselves with a virtual monopoly in the Times Square area in New York City. They'll control 40+ screens in a half-block radius!

The new company, as I read, will be called AMC Entertainment.

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Jeff Arellano
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From: Monterey Park, CA
Registered: Jun 2003


 - posted June 21, 2005 04:42 PM      Profile for Jeff Arellano   Email Jeff Arellano         Edit/Delete Post 
With Lowes signed on for the Atlantic Times Square project here in Monterey Park, expect AMC To Close Montebello possibly if the merger goes through.

Lowes is not big in Los Angeles, but does have a key theatre in Universal City, and once again for the 3rd time, AMC Will have a theatre in Beverly Hills.

Otherwise the others are crap.

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Dave Felthous
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Posts: 186
From: Seattle, WA
Registered: Jun 2003


 - posted June 21, 2005 08:46 PM      Profile for Dave Felthous   Email Dave Felthous         Edit/Delete Post 
This poses a lot of intrigue in the Seattle market. Regal has been the dominant exhibitor here, with Loews close behind. When AMC bought General Cinema it closed most of the GCC units in this area. But they are now expanding here, including the Kent Station 14 in an area that Regal abandoned several years ago. What's maybe more interesting is that Regal just joined forces with AMC to promote wider on-screen advertising. I work at a Regal that's trying to stay above water since a Loews 16 opened three blocks away. It's curious that, while we will remain competitors, the same on-screen advertising product will presumably end up at my Regal and at the AMC/Loews nearby.

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Jeff Arellano
Senior Member

Posts: 685
From: Monterey Park, CA
Registered: Jun 2003


 - posted June 21, 2005 08:48 PM      Profile for Jeff Arellano   Email Jeff Arellano         Edit/Delete Post 
AMC also will have a strong presence in San Francisco with the Van Ness, and the Lowes Meteron, the two prominent mega's in the city.

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Ron Newman
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Posts: 145
From: Somerville, MA
Registered: Jan 2005


 - posted June 22, 2005 06:58 AM      Profile for Ron Newman   Email Ron Newman         Edit/Delete Post 
This topic is also being discussed at CinemaTreasures:

AMC, Loews Cineplex to Merge!

I've posted some comments there on the Boston-area situation.

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Richard A Stegman Jr
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Posts: 267
From: Calimesa,CA
Registered: Jun 2003


 - posted June 22, 2005 10:15 AM      Profile for Richard A Stegman Jr   Email Richard A Stegman Jr         Edit/Delete Post 
In Santa Monica,at the Promenade,there is an AMC multiplex with a Loews Cineplex a few blocks away in the same area.

One of those has to go.

Questioin is:which of the two is more profitable to keep open?

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Dave Felthous
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From: Seattle, WA
Registered: Jun 2003


 - posted June 22, 2005 11:24 AM      Profile for Dave Felthous   Email Dave Felthous         Edit/Delete Post 
One of the two Santa Monica multiplexes won't necessarily close. If they're mere blocks apart they don't play the same movies anyway, so a change of ownership by itself shouldn't mean a closure. The new company will still want to keep the market saturation that AMC and Loews now share. I believe theaters have to be five or more miles apart before they show the same films.

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Ron Newman
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From: Somerville, MA
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 - posted June 22, 2005 11:42 AM      Profile for Ron Newman   Email Ron Newman         Edit/Delete Post 
Loews Boston Common and AMC Fenway 13 are only 2.25 miles apart but often show most of the same movies.

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Jeff Arellano
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Posts: 685
From: Monterey Park, CA
Registered: Jun 2003


 - posted June 22, 2005 03:43 PM      Profile for Jeff Arellano   Email Jeff Arellano         Edit/Delete Post 
Santa Monica's Lowes and AMC dont share product, both share with the Mann in front of the AMC and Laemelle around the corner from both, but the Lowes is only a 4-plex I beleive and is pretty old.

I wonder what fate AMC will hold on the 6-plex in Marina Del Rey. Its a big theatre for a 6plex, has a 6 screen Regal /UA around the corner, but no other real competition within 5 miles.

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Chris Utley
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From: Torrance, CA
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 - posted June 23, 2005 01:40 PM      Profile for Chris Utley   Author's Homepage   Email Chris Utley         Edit/Delete Post 
quote:
In Santa Monica,at the Promenade,there is an AMC multiplex with a Loews Cineplex a few blocks away in the same area.

One of those has to go.

Heck...both of them can go! They've all outlived their usefulness. I suspect AMC will build a brand spanking new 16 plex either on 3rd Street Promenade or the surrounding area to replace both of those old theatres.

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Jeff Arellano
Senior Member

Posts: 685
From: Monterey Park, CA
Registered: Jun 2003


 - posted June 23, 2005 03:18 PM      Profile for Jeff Arellano   Email Jeff Arellano         Edit/Delete Post 
quote:
I suspect AMC will build a brand spanking new 16 plex either on 3rd Street Promenade or the surrounding area to replace both of those old theatres.
Chris, maybe when they tear down the Santa Monica Place mall and build 3rd St through again to Colorado.

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David Velesaca
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From: Brooklyn, NY
Registered: Jun 2005


 - posted July 03, 2005 02:38 PM      Profile for David Velesaca   Email David Velesaca         Edit/Delete Post 
There is no better feeling when i get into an AMC , sitting in that big chair....nothing better from a long day of work.

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Scott D. Neff
Tour Guide

Posts: 661
From: San Francisco, CA
Registered: Feb 2003


 - posted July 03, 2005 04:27 PM      Profile for Scott D. Neff   Email Scott D. Neff         Edit/Delete Post 
I personally don't like the AMC chairs. They're much much too straight-backed, and the headrest is at a weird angle on most of the seats I've sat in.

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