While a potential end to the writers’ strike represents positive momentum for Hollywood, union members still need to ratify the deal.
Movie theater shares popped on Monday following news of a tentative labor deal between the Writers Guild of America and the Alliance of Motion Picture and Television Producers.
“The world’s movie theatres can celebrate. Extremely good news that progress is being made,” AMC CEO Adam Aron said on Sunday in a post on X, the site formerly known as Twitter.
Shares of AMC were up roughly 7% on Monday. The notoriously volatile stock reached as high as $8.50 a share.
Shares of Cinemark and IMAX followed behind, up 2.7% and 1.5%, respectively.
Shares of studio owners, meanwhile, were largely down: Disney and Comcast shares were fractionally lower on Monday, while Warner Bros. Discovery fell nearly 4%.
While a potential end to the writers’ strike represents positive momentum for Hollywood, union members still need to ratify the deal and even then, it’s still only half the battle.
