...AMC Entertainment Case Study Lenders Lack The Ability To Negotiate With Borrowers Situation Overview Ø In April 2008, AMC Entertainment Holdings put forward an amendment to holder’s of its L+500 Super Holdco PIK Loan to provide the Company with flexibility in repurchasing the loan at a discount Lenders were given an ultimatum: Sign within five days and receive a 5 bps fee, otherwise, you will receive nothing Included in the terms of the amendment were as follows: Ø Ø Ø Borrower could repurchase up to 100% of the loan, but NOT necessary to repurchase pro rata from lenders; loan would be deemed retired Sponsor could repurchase up to 33% of the loan for its own account; loan would NOT be deemed retired and interest would still accrue on the loan Ø Ø Ø Lenders who requested a holder list from the investment bank were not provided with one Due to nature of ultimatum and lack of transparency amongst holders, lenders were forced to sign, as is, or forfeit their amendment fee How Bank Loan Update Could Have Changed the Outcome Ø Ø Bank Loan Update has individual Company discussion boards for the entire leveraged loan market Requisite Lenders of the L+500 Super Holdco PIK Loan could have come together on Bank Loan Update to discuss the amendment in detail before signing; some of the key points which may have been altered: Ø Ø Requesting a higher amendment fee à 10 bps fee has been more standard for these types of amendments Reducing or eliminating Sponsor’s...
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...Competitors •Hulu: 7.99$ per month (Hulu), –In 2007, NBC and Fox—joined, two years later, by ABC—created Hulu, a Web site that lets viewers watch current and many past television shows but is subsidized by the same complement of commercials seen on broadcasters’ Web sites. –Five million viewers subscribe to Hulu Plus, which, for eight dollars per month, offers more current content and past shows, on multiple devices and with fewer commercials. •Amazon Prime: costs $79 a year or $6.60 per month) –The advent of the Internet and streaming video brought new competitors. In 2011, Amazon made its streaming-video service, Instant Video, available free to every customer who signs up for its Amazon Prime program, which, for seventy-nine dollars a year, also provides free two-day shipping. –The arrangement inverts the traditional advertising model: instead of forcing you to view commercials, video is the gift you get for shopping. –Amazon Prime subscribers number about twenty million, although the number of those who are Instant Video viewers is certainly smaller. –Last fall, Amazon released its first original series, “Alpha House,” created by Garry Trudeau. •YouTube -owned by Google: –A billion unique visitors watching six billion hours of video every month. Ynon Kreiz, the executive chairman of Maker Studios, the world’s largest provider of online content, noted that its series “Epic Rap Battles of History,” broadcast on YouTube, and which offers comical face-offs...
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...AMC theaters is and American movie theater and it is operated by AMC Entertainment Inc. The Durwood brothers founded it in 1920 and nowadays AMC Company occupies the second-largest place on the chain of the American cinema market share, behind Regal Entertainment group and ahead of Cinemark Theaters. The theatres welcome approximately 200 million guests annually through the doors of its more than 300 locations and with 4960 screens. With innovative amenities and a focus on providing a bunch of movies in the best theatre environment. In hence, AMC is recognized as an industry leader and an iconic destination. The company has 346 locations around the USA, mostly in North America. They also have more location outside USA in Mainland China, home of its corporate parent. Moreover, the headquarters of AMC is located in Leawood, Kansas. AMC’s objective is based to welcome every people to their theaters gates to all associates and make them to live every experience amazing. Also, on the other hand, AMC plans to expand their structure worldwide with the idea of having icon locations in major urban areas and other select areas. On the competition section, AMC was the first cinema who created multiplexing, which is the act of building a movie theater complex with multiple screens converting a unique environment using motion picture exhibitors (traditional method) to increase operating activities efficiencies. However, multiplexing has been discontinued to be a competitive advantage for AMC...
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...The Buyout of AMC Entertainment (AMC) 1. What are the current strengths and weaknesses of AMC (before the proposed buyout) and the movie theater industry as a whole? 2. In what ways does AMC conform or not conform to an "ideal LBO target"? 3. Why does JPMP want to own AMC? In particular, what are the value-creating opportunities for this transaction? 4. What are the main risks of the transaction? Does the existence of Apollo Management , L.P. make the deal more or less risky? If things do not go as planned, what downside protection, if any, does JPMP have? Obviously, explain your answer. 5. What is the per share value of AMC to JPMP under the proposed LBO? Use the APV approach to value AMC. You can use an exit multiple of the adjusted EBITDA of 8 as an estimate of the terminal value. Calculate the price based on the 2 following assumptions. Obviously, parts a and b will be done using Excel. When you do your case, make sure the spreadsheet printouts are easy to follow, label everything, etc. a. Using the APV, calculate the per share value assuming the debt level will stay constant after 2009 to calculate the terminal value of the interest tax shield. b. Using the APV, calculate the per share value assuming the terminal value of the interest tax shield is zero. c. Comment on the impact of the terminal value of the tax shield on the overall value of this deal. d. Comment on the appropriateness of...
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...the verge of bankruptcy. At the time, brothers Aldo and Rodolfo controlled equal 50% shares of the company, though contributed less to the company than he and his sons did. In 1979, Aldo developed the Gucci Accessories Collection, or GAC, intended to bolster the sales for the Gucci Parfumes sector, which his sons controlled. GAC consisted of small accessories, such as cosmetic bags, lighters, and pens, which were priced at considerably lower points than the other items in the company’s accessories catalogue. Aldo relegated control of Parfums to his son Roberto in an effort to weaken Rodolfo’s control of the overall operations of the company. Aldo Gucci expanded into new markets including an agreement with American Motors Corporation (AMC). The 1972 AMC Hornet compact "Sportabout" station wagon became one of the first American cars to offer a special luxury trim package created by a famous fashion designer. The Gucci cars sported boldly striped green, red, and buff upholstery and on the door panels, as well as the designer's emblems and exterior color selections. Though the Gucci Accessories Collection was well received, it proved to be the force that brought the Gucci dynasty crashing down. Within a few years, the Perfumes division began outselling the Accessories division. The newly-founded wholesaling business had brought the once-exclusive brand to over a thousand stores in the United States alone with the GAC line, deteriorating the brand’s standing with fashionable customers...
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...2013 Chevy Camaro I. The Chevrolet has an abundant product family that is versatile across the entire automobile spectrum. Chevrolet offers any type of car that is on the consumer market, with the Camaro as their affordable sport car selling at a basic price of $23,000. The Camaro is an affordable and economical rear-wheel-drive performance sports car with a V-6 or V-8 engine. The Camaro is a two door coupe that seats four people comfortably with an estimated 30 miles per gallon. The Camaro can be classified as a red ocean as it competes directly with other retro-inspired muscle cars, including the Dodge Challenger and Ford Mustang. This car is geared for optimal customer user experience. The powerful engine and old American muscle car style gives the user a full exclusive sports car experience. For Chevrolet, safety is extremely important to their brand. The innovation of having high performance headlights with multiple air bags helped give the car the rating of a perfect NHTSA Crash Test Ratings of 5 stars. II. The Chevy Camaro is targeted and segmented to a specific market because there is a particular customer group who is interested in this product. For starters, Chevy cannot start marketing and targeting families with children because this car would be impractical for that situation. It would be just as impractical for Chevy to target businesses and market this car as a flexible all work condition vehicle. This car is clearly a sports car, and should be...
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...Directions: Think about individual products and the company that makes them. Describe three generations of that product (past, present, and future). Then in a multipage write-up, answer why was there change, what changed, and what will be the challenges and issues (business and technical) of the future generation. On September 12, 1966, General Motors first displayed a preview of their next generation car, the Camaro. There were two main reasons why General Motors came out with this car. First, General Motors was trying to create a new type of car to satisfy consumer’s desire for a strong and faster type of car. Second, it was General Motor’s way to compete with Ford’s new Mustang. When the Camaro first came out, it was classified as a compact car. However, they later changed the classification to a pony car, and it has been seen more as a touring car, sports car, or muscle car. Along with the changes in names, there have also been many changes in style, technology, features, and specifications. General Motors is now in production of their 5th generation Chevrolet Camaro. On January 6th, 2006, General Motors started brainstorming ideas and concepts for this new generation car with a new body, wheelbase, engine, transmission, suspension, and much more. After two years of designing, engineering, manufacturing, and problems, on July 21, 2008, General Motors officially unveiled the production of the 2010 5th generation Camaro. This new generation Camaro was able to enhance...
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...The movie exhibition industry holds one of the largest retail spaces after shopping complexes/malls. The greatest opportunity of this industry lies here. Being an industry that has been constantly adopting new technology and trends, I am of the opinion that leveraging this retail space not only for advertising space (standees, posters, etc.) but also for enhancing the cinema experience, would make profits soar in the long term. By having Bowling centers, Billiards tables and other in-house sporting activities, it lures the young adults and children alike. Introducing a diversified alternate content during the weekdays and off-peak hours would be another mechanism of generating greater profits. The experience of being at a movie theatre is the sole differentiator and maximizing it without adversely affecting the consumer interests should be the goal of exhibitors. The external threats to this industry lies in the very hands that feed it – the studios. Studios are poaching that sacred territory of exclusivity by introducing Video-On-Demand and reducing the gap between movie and DVD releases. This could be attributed the ever changing needs of the consumer. The rise of streaming options such as Netflix and Hulu have further bitten into the exhibitor’s share of the pie. The barriers to entry in the movie exhibition industry are relatively high. The major players, by their sheer number outpace any new entrant. The profitability levels also depend on the economies of scale here....
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...Dear Mam/Sir Our Company, Widescope Media and Entertainment Network is an integrated media and entertainment company, involved in the design, creation, production, distribution & marketing of all forms of creative content and related aspects, across all media platforms. The company comes with a sheer passion to excel – Passion, which is moulded with an astute sense of proficiency and professionalism - just the right mix which ignites as the shining beacon lighting the path for great success journey for us and our clients. The company operates in almost every segment of the media & entertainment industry viz films, television, home entertainment, animation, digital and new media. Our dedicated team of professionals has hundreds of man-years in this ever evolving industry which is fuelled with innovation and resourcefulness.The world of media and entertainment is dynamic, challenging and constantly evolving. Instep with this ever changing landscape, Widecsope renders a range of media services. The world of media and entertainment is dynamic, challenging and constantly evolving. Instep with this ever changing landscape, Widecsope renders a range of media services. Widescope has always been keen to associate itself with social movements and programmes that cater to the burning issues of today’s times, just like ..........(organisations name). Being a youth organization ................. (organisations name) has catered to the pressing issues...
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...It has a reach of more than 45 million viewers in India. This is the only channel that connects you to the whole world not after the event happens, but on the time of incidents happen, so this is the only channel that lives you and connects you to the whole world. Not only the news, this also entertains the public by showing varities of show. this is the only channel of India that remains indians connected not only with the news but also with some other knowledgeable things and with the entertainment world also. Aaj Tak is the world class broad caster of News that provides not only the Indians but also the foreigners its services by warming up the people through its hot and live news. Aaj Tak gives information to public about each and every field ie. News regarding each and every field. Therefore Aaj Tak is the Perfect and Upto date News Channel. Aaj Tak's wide array of news programming includes daily new bulletins on "Aaj Subaha" and "10tak," politics, sports, business, entertainment, international coverage and much more. Aaj Tak delivers the latest news in a viewer friendly language – as and when it happens. Besides the unrivalled bulletin coverage, Aaj Tak has also pioneered feature-based programming within the news genre with leading shows such as Seedhi Baat, Cinema, Khel and Jurm. It reaches to people in remote villages too, where this channel is hugely popular because of the channel`s India centric programming. It is a free to air channel in India and is being...
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...Evelyn Widjaja Ms. Webster Expository Composition Period 2 7 April 2011 Mass Media The concept of media has expanded throughout society, whether to being on the newspaper, television, radio and the internet (Robyn 1). The main purpose of mass media in our society is to provide information, entertainment and advertisement (http://saching.com/Article/The-Positive-and-Negative-Effects-of-Media/873). I will discuss the influence that mass media has for the public and some evidence that will help support the statement “People are more influenced by mass media that they think” (Alexander & Janice 1). Technology has attracted people to engage in mass media, it has brought out easy ways of communication and provided us to make contact with people from different places (Robson 1). Mass media does not corrupt us but it gives the information clearly and steadily (Robyn 1). We need to add to these different types of media as in a way that can help us in life ( Levine 9). Our everyday style is showered with advertisement, more like information and other sorts of different type of mass media (Robyn 2). For instance the newspaper is an incredible influence tool in the society, they can easily turn on people emotions in favor or against an issue sometimes (Robyn 2). This is because we as readers tend to believe everything that is written in the newspaper even though it might be the wrong information (Robyn 2). Due to the technological purposes, we have achieved a step where...
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...carrying guns in school, increasing the possibility of someone being shot. The appetite effect shows that children exposed to a lot of media violence would want to see more of this kind of media. Simply put, the more one watches, the more wants to watch. While bystander effect explains that children who watched too much violent entertainment habituate to gradually increasing, amounts of violence, in other words they are becoming more callous, desensitized, and less sympathetic to the victims of violence, whether in media or in real life. And last, children who have aggressor effect shows that children tend to become more violent, meaner and more aggressive once they are exposed to a lot of media violence. In general, males get more affected in the, appetite, bystander and the aggressor effect while females get more affected in the victim effect only. But the author said that it is still unclear how to exactly predict any given individual will be affected by any given media violence presentation. Boniol, 1998, the increase of rape cases of children and harassment in the streets of India are one of the results of media violence. Major sources of entertainment in India are films, and television programs....
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...three day global meet that covers the entire Media and Entertainment industry like Films, Broadcast (TV & Radio), Digital Entertainment, Animation, Gaming, Visual Effects, etc. Thousands of Delegates across the world were expected to attend this event from Media and Entertainment. This is the platform for the media & entertainment professionals to network and develop themselves in the industry. Frames originally, started in the year 2000 and had evolved as a great forum to discuss emerging media and India’s role in this. Apart from networking, it delivers thought provoking speeches and inspiring comments from various media experts. Frames 2012 has started from 14th March, 2012 with the inauguration ceremony hosted by the famous Bollywood Director & Producer Karan Johar. Also the ceremony was followed by the Lighting of the Lamp, Keynotes and Inaugural notes by the Bollywood actor Sonam Kapoor; Hon’ble Chief Minister of Maharashtra, Prithviraj Chavan; Chairman of MPAA, Senator Chris Dodd; CEO of Star India & Chairman of FICCI Broadcast Forum, Uday Shankar. The launch of the FICCI-KPMG Report and FICCI Amarchand Lawbook was also the part of the inaugural ceremony. The discussions on the Day 1 was all about the Digitization, India- Japan Partnerships in Animation, Marketing and Distribution of Films, Upcoming challenges for the Print Medium, Business Connection in Online World, Financing the Media and Entertainment and Protecting copyrights, Infringements and Remakes...
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...Equipment Labor Volunteers Service Charge Delivery Charge Misc. Charges Total FOOD & BEVERAGE PERSONNEL/ STAFF Event Coordinator Designer Show/ Event Staff Host(s)/ Hostess(es) Registration Consultants Public Relations Additional Staff Overtime Security Event Photographer Event Videographer Volunteers Other Set-up/Break-down Crew Total PERSONNEL/ STAFF Estimated Actual Estimated EMERGENCY CONSIDERATIONS Estimated Actual Total Estimated Actual RENTALS Tables Chairs Linens/ Napkins/ Chair Covers Glassware China Utensils Pipe & Drape Carpeting/ Flooring Staging (Skirting/ Stairs) Risers Dance Floor Tents/ Canopies Stanchions/ Ropes Props Furniture Labor Lighting Delivery Charge Other Total RENTALS ENTERTAINMENT Music Talent Speaker's Fee(s) Labor Other Total ENTERTAINMENT Estimated Actual Actual Medical/ Ambulance Canopies/ Tents/ Coverings Rain Plan Cost Other Total EMERGENCY CONSIDERATIONS Estimated DÉCOR SUPPLIES vent Stage Stage Backdrop Table Décor/Centerpieces Flowers/ Plants Candles/ Balloons Signage Props Labor Delivery Charge Other Actual AUDIO-VISUAL TV Monitors/ Screens Cameras Disc (Video) Recorders/ Players Estimated Actual Overhead Projectors/ Carts Slide/ Film Lectern/ Podium Sound System Microphones(Lav, Podium, etc) Technical Staff Labor Delivery Charge Other Total...
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...brands, including Virgin Mobile, Monster Heartbeats by Lady Gaga headphones, Hewlett Packard laptop, Polaroid, Diet Coke, Wonder Bread, Miracle Whip, and dating site PlentyOfFish.com. Although the frequency of product placement in this music video has been to a ridiculous level, the way that brands listed above are inserted into each scene is quite coherent. For example, Gaga steals the Virgin cellphone to contact Beyoncé to bail her out of jail. Food brands like Miracle Whip and Wonder Bread feature in the kitchen scene. The production placement in “Telephone” is interesting and worth studying since it shows viewers that the boundaries between entertainment and advertising have been blurred because of pop culture phenomena and that these two industries’ purposes are getting intertwined. “Telephone” represents the anxiety of entertainment industry about costs to make videos and promotions, which hence causes the artists to...
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