AMC Entertainment Sells Its Ownership Stake In Production Studio Open Road Films

AMC Entertainment Holding Inc. on Tuesday said it's decided to sell its stake in film production company Open Road Films. The cinema chain operator has struggled recently from high costs and poor box office returns for Hollywood films. AMC said last week it would look to cut costs and monetize some of its assets. Open Road Films is the production studio behind 2015 Oscar-winner "Spotlight." AMC said in its 10-Q filing with the Securities and Exchange Commission that it sold its 50% ownership stake in Open Road Releasing LLC, which operates Open Road Films, and owns Fathom Events, as well as investments in other film and media companies. AMC sold its stake to Tang Media Partners for total proceeds of $28.8 million. Open Road was started in 2011 as a joint venture between AMC and rival cinema operator Regal Entertainment Group . Shares of AMC were up more than 2% intraday on Tuesday, but have declined more than 51% in the year to date. By comparison, the S&P 500 index is up nearly 11% in the year.