If you’re interested in the entertainment sector, you’re going to get a kick out of today’s news. AMC Entertainment, Inc. (NYSE:$AMC), a widely popular movie theater chain, announced on Tuesday that it has entered into a partnership with Dreamscape Immersive, which is a location-based virtual reality startup.
What brought the partnership on? Well, according to AMC, both companies hope the move will “rapidly scale the development” of the virtual reality (VR) technology.
Shares of AMC increased as much as 4% in Tuesday morning trading. Under the terms of the deal, AMC will lead a $20 million series B funding route and invest $10 million in Dreamscape. AMC will also finance up to six Dreamscape virtual reality centers in its cinemas over the course of the next 18 months. But wait, there’s more. AMC will also be investing another $10 million into a content fund.
A funding round includes the following investors: Imax (NYSE:$IMAX), Steven Spielberg, Warner Bros. (NYSE:$TWX), and Twenty-First Century Fox (NASDAQ:$FOXA).
In the year to date, AMC shares have fallen roughly 54%.
Featured Image: depositphotos/Irochka
