After a report that the world’s largest online retailer, Amazon.com Inc, was interested in purchasing the theater chain, shares of AMC Entertainment Holdings Inc rose as high as 21% on Tuesday.

According to people familiar with the conversations, Jeff Bezos, the creator of Amazon, has sent his investment advisors and senior entertainment executives to investigate takeover ideas for AMC.

There were no comments available on the issue from AMC and Amazon. \

In an effort to strengthen its Prime Video streaming service in the face of fiercer competition, Amazon concluded its $8.5 billion transaction for MGM last year, acquiring the studio responsible for “Rocky” and the James Bond films.

Since the easing of pandemic limitations, movie theaters have had trouble drawing crowds as individuals are forced to spend less on out-of-home entertainment and more on groceries and rent due to rising costs.

“We do not think that AMC is a likely acquisition target in general given its massive debt and inflated valuation,” said Wedbush Securities.

The brokerage suggested that the online retailer might be better suited purchasing Cineworld Group Plc, a British company that filed for bankruptcy protection in the United States in September.

Refinitiv records show that AMC had a total long-term debt of $5.17 billion.

The stock of the company last rose 10% after reversing part of its gains. As of Monday’s closure, they had increased by about 11%, giving the business a market worth of about $2.4 billion.

AMC, one of the well-known “meme” stocks, peaked in value in June 2021 at more than $23 billion due to the Reddit-driven upswing.

(Adapted from TheEconomicTimes.com)