November 20, 2003
AMC Entertainment, whose theaters account for about 12 percent of domestic theater revenue — more than any other chain — is in talks to merge with Loews Cineplex Entertainment, which accounts for 4.6 percent of the market, published reports said today (Wednesday). Spokespersons for each chain declined to comment on the reports. A merger of the companies would face intense regulatory scrutiny inasmuch as the two chains currently closely compete in many large markets and in some cases have theater complexes situated in close proximity to one another.
Here’s a roundup of reports about a possible merger of the country’s most successful mega-circuits:
Variety: AMC, Loews eyeing major screen team (sub. required)
“AMC Entertainment and Loews Cineplex are in talks about a merger with a goal of striking a preliminary agreement by year’s end. agreement by year’s end. A combo of AMC and Loews — the No. 1 and No. 5 U.S. exhibs — would create a mega-circuit of more than 5,600 screens.”
The Hollywood Reporter: Double feature: AMC, Loews talk
“Details about the structure of a possible AMC-Loews union are still murky, in part because Loews' parent company, Toronto-based Onex Corp., and AMC’s majority investor, Apollo Management Lp., have no immediate plans to liquidate their respective stakes in the theater chains, sources said. What is clear is that AMC chief executive Peter Brown would head up the combined entity, though plans for the rest of the two management teams remain uncertain.”
AMC: AMC Entertainment Inc. Confirms Preliminary Discussions
“AMC Entertainment Inc. (AMEX:AEN), one of the world’s leading theatrical exhibition companies, confirmed today that it is engaged in preliminary discussions with Loews Cineplex Entertainment Corporation about a possible business combination.”
National Post (from Canada): Onex in talks with AMC to create movie colossus
“The announcement of talks between the two comes shortly after it was revealed that the initial public offering of Onex’s Canadian movie theatre business will likely raise less money than originally expected. The Cineplex Galaxy Income Fund now is selling 17.5 million units at $10 each, raising about $175-million. That’s down from $235-million in the original prospectus. The trust’s yield also was boosted by about one percentage point.”
Brother Andrew Corsini Fowler, 87, a native Chicagoan who helped found Theatre Historical Society of America in 1969 with Time-Life Editor Ben Hall, of New York, died recently while in convalescent care in Notre Dame, Indiana.
October 28, 2003
October 24, 2003
Theater chains are going back to the past for inspiration for the newest mega-palaces being constructed across the country by circuits like Loews, Muvico, AMC, Krikorian, Pacific, Harkins, and more. As journalist Andreas Fuchs writes in this Hollywood Reporter article, “These days, successful multiplex design involves emulating stylish hotels, evoking nostalgia for classic theaters and renovating or expanding on those original palaces of dreams.”