Georgia Theatre Chain Bought In Billion Dollar Deal

AMC Entertainment is buying Columbus-based Carmike Cinemas for $1.1 billion. The deal would create the world's largest multiplex chain, with more 660 cinemas and nearly 8,400 screens. 

The combined company will be headquarters at AMC's front office in Kansas. Many questions about the consolidation remain, according to the Columbus Ledger-Enquirer:

The companies did not address any possible employee cuts or theater closings as part of those "synergies." They did estimate cost savings of about $35 million a year following the merger, including "reducing general and administrative expenses by combining back-of-the-house functions such as accounting, finance and technology."

The purchase  comes as movie ticket sales surpassed $11 billion for the first time last year, but films face strong challenges from streaming TV and video games, Variety reports: 

AMC has moved aggressively to counter those challenges by installing recliners, expanding its menu options, and offering alcohol service at certain locations. [AMC CEO Adam Aron] has said that improving AMC’s loyalty program is a priority and the company plans to redesign and relaunch it in the second half of this year. The AMC chief predicted that the enhanced size of the company would allow it to offer more benefits to its customers.

AMC is owned by Chinese conglomerate Dailan Wanda Group.

Two months ago, the company announced it was buying Legendary Entertainment, co-financier of blockbusters like Jurassic World and The Dark Knight.

Material from the Associated Press was used in this story.