@karaswisher @profgalloway I love listening to Pivot. Great podcast. However I want to correct a few of the things you said today about AMC/AMZN. Not sure if you will even read this trail, but if you do apologies in advance for its length! @EntStrategyGuy would love your views.

1) The source of the story was the Daily Mail Financial Section. Not sure they have ever broken any big financial news before and note that no one followed up with any more info aside from re-quoting them. Makes me very suspicious.

2) Scott, AMCs market cap may only be $500m but the EV is US$11bn. Still small for AMZN but nothing like as small as you were implying and any deal would involve tricky discussions with bondholders and banks.

3) Kara there are three listed movie theater operators. AMC which is in deep financial trouble irrespective of Covid, Cinemark which is listed on the NYSE and Cineworld which is listed in London and owns Regal in the US.

4) Your view that they are all "desperate to sell" is incorrect. Covid aside, Cinemark is actually in decent financial shape, generates a tonne of FCF and is very well run and Mooky Gerdiger at Cineworld is in no hurry to sell either.

5) Scott you write this industry off way too quickly & without digging into some numbers. DIS did over $13bn in box office revenues globally in 2019. Explain to me what the model is to replace that via Disney+? And thats before considering the whole ecosystem (merch, rides etc.)

6) Lets look at the economics of the Trolls SVOD release you mentioned. This was done at a time when literally EVERYONE was sitting at home meaning that whatever they did would literally be a peak number if you were building forward looking assumptions for such a model, right?

7) Universal did around $100m in gross revenues. ~30% will have gone to the various distributors leaving them with $70m. They had spent all the marketing $ on the movie already so there were no savings and the rental revenues will be tiny now as a result of this launch.

8) Finally, without going into the weeds too much, as it had zero box office revenues they wont be able to sell this to cable channels etc for anything more than literally tens of thousands of dollars. All in all, for a peak SVOD scenario, hardly a big win for them financially.

9) For the record, Trolls 1 did global box office revenues of US$350m. Think about what Trolls 2 would have done over SVOD with no movie theater launch if the whole world hadnt been sitting at home with nothing to do! SVOD cannot replace movie theaters and nor can streaming.

10) US movie theaters have been underinvested for years. The experience for the moviegoer is terrible. But go visit a new, clean movie theater in Poland, Czech,Israel,UK.Its night & day.When Covid is over go visit the new Regal Union Square to see what the future might look like.

11) No question this industry is evolving and is going to change. Theatrical windows might shorten. New agreements will be signed. There WILL be M&A! But I think you might be writing it off too quickly, esp as the Studios simply dont want to lose those revenues overnight!