M E R G E R S
Multiplex Merger Mania December delivered not one but two Christmas cinema crackers — a proposed $2.1billion acquisition of Canada’s Cineplex by Cineworld and Cohen Media Group’s purchase of Curzon. With more consolidation likely this year and beyond, Patrick von Sychowski examines merger mania in the exhibition sector.
I
DON’T THINK THAT CONSOLIDATION
provide the benefits achievable through consolidation (or at
we are seeing among the larger
least not to an acceptable timescale). Those benefits of course
exhibitors (and to a lesser extent to date
involve efficiency savings on ‘back office’ functions, but also
on the distribution side of the house in
the increased negotiating power that comes from being a
studios) is unique to our industry,”
larger player in the market.” Cineworld more than any seems
commented Phil Clapp, head of the UK
to embody this ‘efficiency savings’ drive. In December it raised
Cinema Association and president of UNIC, when CT contacted
its ‘synergies’ goal from $150m to $190m for Regal, citing
him for his take on the subject. “Rather it is something seen in
“significant
many mature industries where organic growth alone does not
elimination of excess costs.” In January it was announced that
www.cinematech.today
015_MAR20_MULTIPLEX.indd 15
improvements
in
contractual
terms
and
0 3 / 2 0
>
1 5
15/02/2020 09:39
