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
“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.