AMC Buying Georgia Based Carmike Cinemas, Deal Completed Later This Year

Chattanooga (WDEF) AMC Entertainment is buying Carmike Cinemas.

The move will create the world’s largest movie theater chain. AMC will pay over one-billion dollars to buy its rival. The acquisition will boost AMC’s theater locations by more than 70% to well over 600. It will also increase its screen count to nearly 8,400. That moves it past Knoxville based Regal Cinemas.

AMC will operate Carmike as a “brand.” The transaction probably wont be completed until the end of 2016, subject to customary closing conditions, including regulatory approval and approval by Carmike’s shareholders. Some theaters may have to be divested in order to make the deal work. The AMC Stubs loyalty program will cut across both brands, AMC and Carmike. The deal should make it possible to grow IMAX screens in the AMC/Carmike footprint.

A representative from AMC says decisions about whether to continue Carmike offerings, like Stimulus Tuesday, will not be made until after the deal closes.

Carmike currently operates six theaters in the Chattanooga area.