Cineworld in deal to be North America’s top movie theater operator

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Cineworld in deal to be North America’s top movie theater operator
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Britain’s Cineworld Group, which already owns the United States’ Regal Cinemas, plans to buy Canada’s Cineplex for $1.6 billion.

Britain’s Cineworld Group is on track to become North America’s biggest operator of movie theaters with its plan to buy Canada’s Cineplex Inc. for $1.6 billion.

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 Inc. will hit attendance. Bigger chains can also have a stronger bargaining position in negotiations with studio giants such as the Walt Disney Co., which have also been growing through tie-ups.

“Top theater chains are gearing up for a challenging 2020 box-office year, as a weaker slate and surge in streaming services could mean another down year for the industry,” Amine Bensaid, an analyst at Bloomberg Intelligence, said in a research note last month. “The studio model could contend with increased pressure if new direct-to-consumer services such as Disney+ and HBO Max follow in Netflix’s footsteps by developing more films for their digital services.

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