AMC Entertainment CEO Adam Aron Calls On Retail Investors To Forgo “Hostility And Threatening” Social Media Posts

As a sign that managing 4 million retailers isn’t necessarily fun and entertaining, AMC Entertainment CEO Adam Aron said most of the advice he receives in his extensive social media correspondence is “well-meaning”, but “some they could be. ” that intention. It hurts me or the company “. This is the first time he has publicly voiced problems with the new fan mode.

The stock network of theater giants has completely changed since the pandemic. The institutions have largely been replaced by individual Reddit chat room and social media retailers, who began collecting shares in the meme stock phenomenon in early 2021. This is an incredibly unusual change that Aaron has cleverly managed ( discussed how in a Deadline interview from CinemaCon). Meme investors saved AMC from bankruptcy by preventing short sellers from borrowing stock because the price will fall. But the constant volatility has led to conspiracy theories on financial manipulation that are difficult to prove in some of the circuit’s shareholders.

“I think I have been known to tweet myself and actively read my incoming tweet. So I have literally seen your observations and advice thousands and thousands of times. I see your frustration with the way the market works or doesn’t work, your anxiety about the number of stocks called “failing” or your alarm at what sounds horrible in their name: obscure trading pools. He said during a conference call later the day after the high earnings of the first quarter. “His anger and resentment towards short sellers are evident. I understand your suggestions that we should ask the government to regulate more markets or take more commercial action. “

“While most [advice] “It is dealt with constructively, some are hostile or threatening,” he said.

“All I can say [is] I really appreciate that you care so much. Furthermore, running a company with broad interests like AMC is an art and not a science. True wisdom is knowing what to do and what not to do … After that, you shouldn’t define silence as inaction. “We are constantly learning smarter ways to act and we promise we will fight, but only when the time comes,” she said.

Angry shareholders also took to Twitter when Aaron sold the stock last year and early 2022, after announcing he would. He pointed out today that “even with the sale of my well-publicized pre-stock, I still have a stake in AMC’s 2.9 million shares … all my incentives are to think and act as a shareholder.”

Elsewhere in his comments, he drew attention to the fact that movies from Netflix, Apple, and Amazon streamers don’t go to AMC theaters because they disagree with the studio window. “If we can convince streamers that they are interested in theatrical screenings of their films, it could be another way to bring more films to our theaters.”

“We continue to make it clear that we would be happy to show some of his biggest and best films, but in doing so we must honor our industry partners. “We can’t have separate rules,” she said.

Aaron and CFO Sean Goodman said the theater business continues to grow as the second half looks stronger than the first, which has improved a lot. Aaron predicted that cash registers in 2022 would double in 2021 and quadruple in 2020. According to him, the fourth quarter of 2022 “will finally reach or approach” the pre-pandemic level.

Delivery and retail of AMC popcorn and snacks will begin at the end of the year, and the AMC-branded credit card is expected to be offered “in a year’s time.” Investors can expect the company to add salt and enter into more dubious deals, such as an investment from Hycroft Mining, which Goodman said was worth $ 63 million on Friday due to a gain in Nevada Gold Mine stock.