Speculation about the Confidentiality Agreement of Hollywood Media Settlement

Today is the second day after investors learned about the settlement of the Hollywood Media lawsuit with AMC. The volume is huge in comparison to the average trading volume. Because the settlement agreement is confidential, some investors are dumping shares because they were expecting announcement of immediate monetary damages which would give them quick trading profits. Others are taking an opportunity to acquire shares even though the outcome is kept confidential. I am not doing any trading and simply holding my position.

Based on many e-mails that I received, some are speculating that because of the settlement, AMC will return its theaters from Fandango to MovieTickets.com. I checked the MovieTickets.com website and I called a local AMC Theater and I do not see any signs of the switch. However, this doesn’t mean there won’t be one. Some other people think that there will be a bigger announcement of a merger between Fandango and MovieTickets, which would be a big win for Hollywood Media. Others think that there were monetary damages awarded and we will find out the amount when the next quarterly report is filed for Hollywood Media.

Disclosures: Long HOLL