×
You will be redirected back to your article in seconds

AMC Entertainment Reaches Settlement With Justice Department to Clear Carmike Merger

AMC Entertainment has reached a settlement with antitrust officials at the Justice Department that will clear the way for its $1.2 billion acquisition of Carmike Cinemas.

AMC will divest theaters in 15 markets, sell off its holdings, and relinquish governance rights in National CineMedia, and transfer 24 theaters with 384 screens to the network of Screenvision Media.

“Moviegoers across the United States have benefited from head-to-head competition between AMC and Carmike that has kept ticket prices in check and delivered a higher quality movie experience,” said Renata Hesse, acting assistant attorney in the DOJ’s Antitrust Division. “Today’s settlement will ensure that movie theater competition is preserved in 15 local markets where AMC and Carmike currently compete.”

She also said that requiring AMC to divest from National CineMedia and transfer screens to Screenvision “will promote continued vigorous competition between the two leading cinema advertising networks — competition that the division fought to protect when it blocked the NCM-Screenvision merger.”

The DOJ filed suit to block the NCM-Screenvision merger in November of 2014. The two companies then abandoned their plans to combine. NCM and Screenvision together serve more than 80% of U.S. movie screens and compete for exclusive contracts for pre-show advertising.

The DOJ had concerns with the AMC-Carmike merger because they are competitors in 15 markets.

Under the terms of the settlement, which still must be approved by a federal judge, AMC must divest the majority of its equity interest in NCM so that it owns no more than 4.99% of the company.

The settlement also requires “firewalls” to ensure that AMC does not obtain NCM’s, Screenvision’s, or other movie exhibitors’ competitively sensitive information “or become a conduit for the flow of such information between NCM and Screenvision,” according to the DOJ.

More Biz

  • Jim Acosta Microphone Moment

    First They Came For Acosta. Why We Sued Trump Before He Acts Again (Opinion)

    AMC Entertainment has reached a settlement with antitrust officials at the Justice Department that will clear the way for its $1.2 billion acquisition of Carmike Cinemas. AMC will divest theaters in 15 markets, sell off its holdings, and relinquish governance rights in National CineMedia, and transfer 24 theaters with 384 screens to the network of […]

  • Daniel GlassUJA-Federation of New York's Music

    Glassnote Music Strikes Strategic Partnership With Kobalt’s AWAL

    AMC Entertainment has reached a settlement with antitrust officials at the Justice Department that will clear the way for its $1.2 billion acquisition of Carmike Cinemas. AMC will divest theaters in 15 markets, sell off its holdings, and relinquish governance rights in National CineMedia, and transfer 24 theaters with 384 screens to the network of […]

  • Movie Theater

    Studios Expected to Push for Early Home Release in 2019 (EXCLUSIVE)

    AMC Entertainment has reached a settlement with antitrust officials at the Justice Department that will clear the way for its $1.2 billion acquisition of Carmike Cinemas. AMC will divest theaters in 15 markets, sell off its holdings, and relinquish governance rights in National CineMedia, and transfer 24 theaters with 384 screens to the network of […]

  • NetEase Discusses Importance of Chinese Gaming

    NetEase Discusses Importance of Chinese Gaming Regulation, Anti-Addiction Measures

    AMC Entertainment has reached a settlement with antitrust officials at the Justice Department that will clear the way for its $1.2 billion acquisition of Carmike Cinemas. AMC will divest theaters in 15 markets, sell off its holdings, and relinquish governance rights in National CineMedia, and transfer 24 theaters with 384 screens to the network of […]

  • Iggy Azalea at Hits 97.3, Fort

    Iggy Azalea Says She’s Signed a $2.7 Million Deal

    AMC Entertainment has reached a settlement with antitrust officials at the Justice Department that will clear the way for its $1.2 billion acquisition of Carmike Cinemas. AMC will divest theaters in 15 markets, sell off its holdings, and relinquish governance rights in National CineMedia, and transfer 24 theaters with 384 screens to the network of […]

  • Sheryl Sandberg

    Sheryl Sandberg: Facebook 'Absolutely Did Not Pay Anyone to Create Fake News'

    AMC Entertainment has reached a settlement with antitrust officials at the Justice Department that will clear the way for its $1.2 billion acquisition of Carmike Cinemas. AMC will divest theaters in 15 markets, sell off its holdings, and relinquish governance rights in National CineMedia, and transfer 24 theaters with 384 screens to the network of […]

  • Bob Bakish

    Viacom Q4 Profit Falls on Cable Ad Revenue Shortfall

    AMC Entertainment has reached a settlement with antitrust officials at the Justice Department that will clear the way for its $1.2 billion acquisition of Carmike Cinemas. AMC will divest theaters in 15 markets, sell off its holdings, and relinquish governance rights in National CineMedia, and transfer 24 theaters with 384 screens to the network of […]

More From Our Brands

Access exclusive content