Hollywood Studios Unlikely to Buy Movie Chains, Even If They Can
- Despite investor optimism, takeover of AMC may be hard sell
- Lifting of Paramount Decrees has spurred wave of speculation
When a federal judge terminated the Paramount Decrees on Friday, movie-theater investors began salivating.
The restrictions, dating back to 1948, had prevented studios from owning theaters. With those rules gone, perhaps a buyer would swoop in and acquire one of the ailing cinema chains. Shares of AMC Entertainment Holdings Inc., the market leader, jumped as much as 27%. Cinemark Holdings Inc. gained 11%.