Britain’s Cineworld Group will buy Canada’s Cineplex Inc. for $2.15 billion. The sale will make Cineworld the largest theatre operator in North America. As explained by the Financial Post, movie-theater operators have been combining to squeeze costs so they can afford facility upgrades and counter the risk that on-demand services such as Netflix and many other streaming services will hit attendance. Bigger chains can also have a stronger bargaining position in negotiation with studio giants such as Walt Disney Co., which have also been growing through tie-ups. Cineworld will pay $34 a share for Cineplex, a 42 percent premium to Friday’s closing price. The deal will be funded by US$2.3 billion of loans.
