If These Companies See Their Buyout Offers Rejected, Who Might They Look To Buy Next?

AMC Entertainment Holdings Inc AMC expects that its $1.2 billion deal to acquire Carmike Cinemas, Inc. CKEC will close by the end of 2016. At this point, all that’s needed is the approval of shareholders and regulators. However, investors know that, on Wall Street, nothing is ever 100 percent certain until it is done.

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If for whatever reason the Carmike buyout hits a snag, AMC may choose to look elsewhere. At a market cap of only $2.9 billion, AMC is one of the smaller public companies in the theater sector. In that sense, its potential buyout targets are limited. The best plan B might be theater company Reading International, Inc. RDI, which has only a $314 million market cap.

Some Do Need Plan Bs

While it’s unlikely that AMC will ever need a plan B, it’s guaranteed that either Incipio or Mill Road, the two private companies bidding for Skullcandy Inc SKUL will need one. Both private companies are bidding on Skullcandy, and there will be only one winner.

Whichever company comes out on the losing end may shift its attention to similarly-valued audio technology company Turtle Beach Corp HEAR or mobile audio systems company Rockford Corporation ROFO.

Since the original Skullcandy bid was announced on June 24, Turtle Beach shares are up 10.3 percent, while Rockford shares are up 0.6 percent.