China-owned AMC Entertainment Holdings' $1.1 billion dollar deal to buy Carmike Cinemas will make the combined company the largest U.S. theatre chain. Bobbi Rebell reports.
China-owned AMC Theatres is buying movie theater chain Carmike Cinemas for $1.1 billion. The deal will make AMC parent, Dalian Wanda group, the biggest theater operator in the world. Shares of both companies rose on news. The $30 per share price tag represents a twenty percent premium to Carmike's closing price ahead of the announcement. Dalian Wanda says, there is very little geographic overlap between the two chains, which will make it easier to get regulatory approval. It also expects to achieve about $35 million in annual savings because of efficiencies. Last month Dalian Wanda announced, it acquired Legendary Entertainment, the company behind blockbusters including Jurassic World. Savio Chan who heads U.S. China Partners, which promotes business ties between the countries, says the company has big ambitions: (SOUNDBITE) SAVIO CHAN, PRESIDENT AND CEO, U.S. CHINA PARTNERS (ENGLISH) SAYING: "They already did five deals by March. They did five deals already, so the trend is already escalating. They are going to find more deals to do that make sense to their ecosystem. " Chan says, the company wants to eventually be even bigger than Disney in terms of market share.