AMC Entertainment’s run as a Hollywood movie studio owner has hit the end of the road. The Leawood, Kansas-based theater chain said it has sold its interest in Open Road Films to Tang Media Partners, a group backed by Chinese investors.
AMC said it finalized the deal on Friday and will receive half of the $28.8 million sale price. The deal came on the same day that AMC announced a $176.5 million loss for the second quarter — which CEO Adam Aron characterized as “simply a bust.”
AMC and rival Regal Entertainment Group launched Open Road in 2011. While the studio won acclaim, in the form of an Academy Award for Best Picture in 2015 for the movie “Spotlight,” it produced few other notable hits. AMC said its share of cumulative losses from Open Road in excess of its capital commitment equaled $41 million as of June 30, according to a filing with the Securities and Exchange Commission.
AMC said it and Regal entered a new marketing agreement with the studio as part of its sale.
Read more: Kansas City Business Journal