"The investment had lain fairly dormant for three years, but early last month, AMC announced it had sold most of its stake in Hycroft to Eric Sprott for $24 million. As it still retained 64,000 shares and over 1 million warrants, AMC still held an interest in the miner and pocketed a small return on the investment. Unfortunately, AMC ended up losing tens of millions in potential profits because of the Sprott deal, underscoring why companies shouldn't stray far beyond their core competencies."
"The theater business has faced challenges for years, but the pandemic accelerated its woes. Cinema closures in 2020 led to a sharp drop in attendance, and recovery has been slow. North American box office revenue reached $8.87 billion in 2025, up 1.5% from 2024's $8.74 billion but down over 20% from 2019's pre-pandemic levels. Ticket sales fell to 760 million in 2025 from over 800 million in 2024 and sit at just 64% of their pre-pandemic figures,"
AMC mirrored Hollywood's decline as shrinking box offices and the pandemic reduced attendance and revenue. AMC invested nearly $28 million in defunct Hycroft Mining in March 2022 for a 22% stake, a move framed as leveraging fundraising abilities but far outside AMC's expertise. The stake remained dormant until AMC sold most of it to Eric Sprott for $24 million, retaining some shares and warrants yet foregoing tens of millions in potential profits. North American box office revenue modestly recovered to $8.87 billion in 2025 but remains over 20% below 2019, with ticket sales at 64% of pre-pandemic levels as streaming alters viewing habits.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]