AMC Entertainment stocks down 3% due to merger

The parent company of AMC Entertainment, Time Warner Inc., said Thursday it had reduced its 2017 earnings forecast by as much as $4 billion, or $6 a share, as it completed the merger with Time Warner Cable Inc. Time Warner, which owns the television and movie industry giants HBO and Warner Bros. movies and shows, said it had increased its share count by nearly 10 percent, from 8.8 million shares outstanding to 10.1 million shares.

AMC Entertainment also said it would pay $100 million to settle its pending class-action lawsuit against Time Warner.

The deal, which Time Warner has said is for as much of a combined $150 billion as possible, will create a media and entertainment company that will operate across three continents.

Time is the parent company and Time Warner is the subsidiary.

“We will continue to work with Time to address our concerns about the merger and the potential for its impact on our business,” Time Warner said in a statement.

AMC and Time also have an ownership stake in the Walt Disney Co., which owns both HBO and Cinemax.

Disney is also the parent of Disney XD, a cable network that has gained steam.

Time and AMC are expected to release more details about the deal in coming weeks.

Time, meanwhile, is seeking to build out its film business by acquiring a majority stake in Warner Bros., which has struggled to turn around the Warner Bros.-owned film studio in recent years.

Time will also merge with Time-Warner Cable to create Time Warner Entertainment.

The combined company will be led by chief executive Jeff Bewkes, who has been at the helm of the company since 2005.

Time said it expects to complete the merger in early 2019, but the company did not specify when that would happen.