AMC Entertainment CEO Adam Aaron asks retail shareholders to resign – deadline

As a sign that managing 4 million retail shareholders is not all fun and games, AMC Entertainment CEO Adam Aaron said that most of the advice he receives in his extensive social media correspondence is “sound”, but “some may to be thrown at us with the intention of actually hurting me or the company. “This is the first time he has publicly pointed out any problem with the new fan-run regime.

The stock chain of the giant theater chain completely overturned after the pandemic. Institutions have been largely replaced by individual retailers from Reddit’s chat rooms and on social media, which began to accumulate in stocks in early 2021 in the “meme” phenomenon. This is an incredibly unusual change that Aaron deftly handled (he discussed how in an interview with Deadline from CinemaCon). Meme investors have saved AMC from bankruptcy by pushing short sellers who hold stocks, betting that the price will fall. But the continuing instability has led to difficult-to-prove conspiracy theories of financial manipulation among some of the chain’s shareholders.

“I think it’s well known that I write my own tweets and actively read my incoming Twitter. So literally thousands of thousands of times I have personally seen your observations and advice. I see your frustration with your perceptions of how the market works or not, your concern about the number of so-called “failed delivery” stocks, or your concern about something that sounds ominous – dark trade pools, “he said in a statement. at a conference call this afternoon after brisk first-quarter earnings. “Your anger and anger at the short sellers are obvious. I hear your suggestions that we should call for more market regulation from the government or take more action from the company. “

“While most [advice] it comes constructively, some come with hostility or are full of threats, “he said.

“All I can say [is] I appreciate that you care so deeply. Moreover, running a company with such broad interests as AMC is an art form, not a science. There is real wisdom in knowing what to do and what not to do … Having said that, you should not interpret silence as inaction. “We are constantly researching the most intelligent ways to act, and I promise you that we will focus, but only when the time is right,” he said, without elaborating.

Angry shareholders also set Twitter on fire when Aron sold shares last year and in early 2022 after announcing he would. He stressed today that “Even with my well-announced pre-sale of shares, I still have an interest in 2.9 million shares of AMC shares … My every incentive is to think and act as a shareholder.”

Elsewhere in his comments, he drew attention to the fact that streaming movies Netflix, Apple and Amazon are not being released in AMC cinemas because they will not agree to the studio window. “If we can convince streamers that it’s in their best interest to show their films theatrically, that could be another way to bring more films into our cinemas.”

“We continue to say very clearly that we will be happy to show some of their bigger, better films, but we must respect our long-standing industry partners. “We can’t have a separate set of rules,” he said.

Aaron and CFO Sean Goodman said the theater business continued to grow, with the second half looking stronger than the significantly improved first. Aaron predicts that the 2022 box office will be close to doubling in 2021 and four times by 2020. He believes that the fourth quarter of 2022 will “finally reach or approach” the pre-pandemic level. .

Home delivery and retail of AMC popcorn and snacks will begin by the end of the year, and an AMC-branded credit card should be available “within one year of today.” Investors can expect the company to add more movie theaters and make less likely deals such as the Hycroft Mining investment – which Goodman said led to a $ 63 million gain on Friday’s share price of the Nevada gold mine.

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