Like a divorced dad who’s finally ready to love again, Canada’s biggest movie theatre chain has put itself on the open market.
Driving the news: Cineplex is reportedly looking for interested buyers, sources told Bloomberg. The chain is in early discussions to potentially merge with one of two other theatre owners: U.S.-based Cinemark Holdings or U.K.-based Regal Cineworld Group.
Catch-up: Cineplex has a messy history with Cineworld. The chain was supposed to buy Cineplex, agreeing to a $2.8 billion takeover in 2019. However, Cineworld backed out of the deal when the pandemic briefly killed in-person moviegoing and later filed for bankruptcy.
Cineplex sued Cineworld for breaking the deal and won $1.24 billion in damages. However, due to Cineworld’s bankruptcy process, it never actually got the money.
Kinepolis, the owner of Canada’s only other large theatre chain, Landmark, was also reportedly interested in buying Cineplex but backed off due to regulatory concerns.
Why it’s happening: The death of moviegoing has been greatly exaggerated, as many people — particularly younger folks, as it turns out — love the communal theatre experience. For now, the industry looks solid, and Cineplex likely wants to sell while the iron is still hot.
Why it matters: Cineplex essentially has a monopoly over film exhibitions in Canada, controlling about three-quarters of box office revenues. A merger with either of these chains would mean that de facto control of the industry would now be in foreign hands.—QH
