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.
