Rep. Hank Johnson Calls for “Close Scrutiny” of Proposed AMC-Carmike Merger

“This acquisition would reportedly combine the nation’s second and fourth largest movie theater operators, making AMC the largest movie theater operator in both the United States and abroad,” Johnson stated.

“I have serious concerns about the effects of this acquisition on consumer choice and prices. Today, consumers already pay upwards of $8 for a bag of popcorn that costs well less than $1 to make, while average ticket prices are reportedly at all-time highs. I have serious doubts that the consolidation of the movie-operation market into an effective duopoly will alleviate these costs. More likely, this consolidation will have lasting effects and threaten to make a night out at the movies prohibitively expensive for working families.

“I also worry that the combined entity will have the market power and incentive to engage in anti-competitive conduct. The proposed merger comes on the heels of another acquisition by AMC’s parent company, Chinese conglomerate Dalian Wanda Group, of a U.S. film studio for $3.5 billion. The combined entity would thus have a hand in both the production and exhibition of certain films. There can be little doubt that this could result in a foreclosure of choices or serve to the detriment of consumers and other competitors.

“With these concerns in mind, I expect the antitrust regulators to provide close scrutiny of this transaction to ensure that consumers are not harmed.”

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