AMC Entertainment Holdings Inc (NYSE: AMC)
expects that its $1.2 billion deal to acquire Carmike Cinemas, Inc. (NASDAQ: CKEC) will close by the end of 2016. At this point, all that’s needed is the
approval of shareholders and regulators. However, investors know that, on Wall Street, nothing is ever 100 percent certain until it
is done.
Related Link: Can
AMC Networks Keep Pumping Out Great TV? It Might Be The Only Thing That Matters
If for whatever reason the Carmike buyout hits a snag, AMC may choose to look elsewhere. At a market cap of only $2.9 billion,
AMC is one of the smaller public companies in the theater sector. In that sense, its potential buyout targets are limited. The best
plan B might be theater company Reading International, Inc. (NASDAQ: RDI), which has only a $314 million market cap.
Some Do Need Plan Bs
While it’s unlikely that AMC will ever need a plan B, it’s guaranteed that either Incipio or Mill Road, the two private
companies bidding for Skullcandy Inc (NASDAQ: SKUL) will need one. Both private companies are bidding on Skullcandy, and there
will be only one winner.
Whichever company comes out on the losing end may shift its attention to similarly-valued audio technology company
Turtle Beach Corp (NASDAQ: HEAR) or mobile
audio systems company Rockford Corporation (OTC: ROFO).
Since the original Skullcandy bid was announced on June 24, Turtle Beach shares are up 10.3 percent, while Rockford shares are
up 0.6 percent.
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win
a $20 Amazon gift card!
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.