DoJ: AMC Required To Divest Movie Theatres, Reduce NCM Ownership

(RTTNews) - Department of Justice or DOJ announced that it will require AMC Entertainment Holdings Inc. to divest theatres in 15 local markets, sell off most of its holdings and relinquish all of its governance rights in National Cinemedia LLC (NCMI), and transfer 24 theatres with a total of 384 screens to the network of Screenvision LLC in order to complete its $1.2 billion acquisition of Carmike Cinemas Inc.

The department said that without the required divestitures and other relief, the merger would result in higher prices and lower quality theatre amenities for moviegoers and weakened competition in the markets for preshow services and theatre advertising, where Screenvision is NCM's only meaningful rival.

DoJ said that the proposed settlement preserves movie theatre competition in 15 local markets and in preshow services and theatre advertising markets.