Movie technology corporations Imax is reportedly considering a sale.
The Wall Street Journal (WSJ) and CNBC reported on the 22nd (local time) that Imax has contacted entertainment corporations to gauge the possibility of a sale and is in early-stage talks. However, because the discussions are still at an early stage, it is unclear whether they will lead to an actual transaction.
Shares of Imax jumped as the sale rumors spread. According to CNBC and others, when news of the review of a sale reached the market, Imax shares rose as much as 14% intraday. As of the 22nd, Imax's market capitalization was about $2.2 billion (about 3.34 trillion won).
Imax is a Canada-based movie technology corporations. It has provided technology that boosts the immersion of theater viewing by combining giant screens, high-definition video, and three-dimensional sound. The technology is used mainly for screenings of Hollywood blockbusters.
Leading acquisition candidates include the online video service (OTT) providers Netflix, Apple, and Sony. Analysts also say Amazon, Disney, private equity, and Middle Eastern sovereign wealth funds could show interest in Imax, in addition to these corporations.
Imax CEO Rich Gelfond was said to have noted at an investor event in Dec. last year that Imax is a company with significant value both as an independent corporations and as part of a large corporations. With demand growing in the movie market for premium screens, which can command higher prices than standard theaters, there is an outlook that Imax's corporate value could rise.
According to data analytics firm Entelligence, premium screens accounted for 16% of North American movie ticket sales from January to April this year, up from 13% five years ago. Imax was reported to have accounted for 5.2% of total North American box office revenue last year. The share is up from 3.2% before the pandemic.