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New Cineplex CEO Talks Hunt For Possible Buyer: “We’re Exploring Different Options”
Cineplex’s new chief executive, Bill Walker, says the Canadian cinema chain is considering a broad range of strategic options, including a possible sale, as it seeks to increase shareholder value. He gave no details or timetable, saying the review will also consider continuing as a privately or publicly owned Canadian company.
The review comes as Cineplex reports a strong third quarter: revenue rose 26 per cent to a record CAN$440 million, while net income reached CAN$23.8 million, compared with CAN$1.2 million a year earlier. Attendance also rose 26 per cent to 14.8 million; the company operates 1,606 screens at 156 Canadian locations. A previous sale to Cineworld, agreed in 2019 for $2.1 billion, was abandoned during the pandemic, and Cineplex was unable to collect damages awarded after the deal collapsed.
In short
- Cineplex is weighing a sale among several strategic options.
- Quarterly revenue rose 26 per cent to a record CAN$440 million.
- Its previous Cineworld takeover deal fell through during the pandemic.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Exploring a sale or other strategic options could secure a strong return for shareholders and bring in an owner with the capital or expertise to expand Cineplex’s business. With revenue, attendance and profits rising, the company may be well placed to attract interest while weighing whether a sale or continued Canadian ownership offers the greatest long-term value.
The case against
A sale could sacrifice Cineplex’s independence and Canadian ownership, and a new owner might change its investment priorities or the role of its cinemas in local communities. Strong recent results also give reason to consider whether the company can create more value by continuing to operate on its own, rather than accepting an offer whose terms and long-term effects are not yet known.
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