Shares in AMC Entertainment Holdings (NYSE: AMC) skyrocketed on Monday as CEO Adam Aron voiced his optimism about the future of the movie theater industry amid promising developments in the 146-day-long writers’ strike negotiations.
The Writers Guild of America has finally struck a tentative deal with entertainment companies. This agreement marks a turning point in the industry as it includes substantial improvements in compensation for streaming content, revisions to minimum staffing requirements for television shows, and safeguards regarding the role of artificial intelligence in the industry.
However, the ink has not yet dried on this agreement, as it now awaits the decisive approval of the members of the Writers Guild, a union representing over 11,000 screenwriters.
In response to this imminent agreement, Adam Aron, the CEO of AMC Entertainment Holdings, took to X (formerly Twitter) to share his overwhelming enthusiasm. Aron is confident this deal can significantly revitalize the struggling movie theater industry, offering hope to AMC investors amid falling share prices.
An announced deal ends the 5-month long Writers’ strike, pending an affirmative union member vote. Directors and Writers contracts now behind us. Only the Screen Actors Guild left to go. The world’s movie theatres can celebrate. Extremely good news that progress is being made. pic.twitter.com/hHNE4UyNLS
— Adam Aron (@CEOAdam) September 25, 2023
AMC Entertainment Holdings (NYSE: AMC) shares soared 6.82% to close at $8.14. The stock has lost -43.35% of its value in the past month and is down -77.33% year-to-date. The traders exchanged hands with 20,287,297 (20.28 million) shares on Monday, higher than the average volume of 13.88 million over the past three months.