Amazon unlikely to acquire AMC, says Wedbush

Wedbush says Amazon (AMZN) is unlikely to acquire AMC (AMC) as it believes the former does not need 10,000 screens to enter the theater business. Amazon would be better off buying a piece of Cineworld, in the firm’s view. Strategically, they may want a place to exhibit their own films, but 1,000 screens are plenty, and 200 is probably enough, Wedbush argues, adding that with the Cineworld bankruptcy, Amazon can probably cherry-pick screens for $200,000 and the creditors will grab an offer like that. Overall, the firm does not think that AMC is a likely acquisition target in general given its massive debt and inflated valuation.