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Earlier this month it was rumoured that CJ CGV, the largest cinema chain in South Korea which has a number of international brands, was interested in acquiring UK-based Vue Entertainment (Vue), backed by Canadian pension funds OMERS and AIMco.
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AMC is currently 50% larger than its next competitor after recent acquisitions including UK-based ODEON in November 2016 for €1.7bn (£1.5bn), followed by US-based Carmike Cinemas in December 2016 for €1bn (£905m), and Sweden-based Nordic Cinema Group in March 2017 for €872m (£771m) from private equity firm Bridgepoint. However despite spending over €3.5bn (£3bn) on acquisitions, it seems AMC is struggling. The group has seen its share price plummet more than 50% since the beginning of the year, and its market cap has a value of €1.66bn (£1.47bn) – less than the combined value of its takeovers.
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Concerns over the future of the cinema industry have increased in recent years, driven by pressure from the growth of online streaming services such as Netflix and Amazon Prime. However it’s a market that still continues to see a wave of M&A activity, and over the past few weeks has made the headlines once again.
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Concerns over the future of the cinema industry have increased in recent years, driven by pressure from the growth of online streaming services such as Netflix and Amazon Prime. However it’s a market that still continues to see a wave of M&A activity, and over the past few weeks has made the headlines once again.
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