WASHINGTON (Legal Newsline) – The U.S. Justice Department announced Dec. 20 that it will require AMC Entertainment Holdings Inc. to divest theaters in 15 local markets in order to finalize its $1.2 billion acquisition of Carmike Cinemas Inc.
AMC will also need to sell off most of its holdings for and relinquish rights to National Cinemedia LLC (NCM) and transfer 24 theaters with a total of 384 screens to the network of Screen Vision LLC.
“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 Acting Assistant Attorney General Renata Hesse of the Department of Justice’s Antitrust Division.
Hesse noted that the settlement will solidify competition in 15 local markets where the two companies compete.
“In addition, by requiring AMC to reduce its equity stake in NCM, terminate its participation in NCM’s business, and transfer screens to Screenvision, the settlement 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,” Hesse said.