The chief executive of Cineworld on Monday played down the threat of streaming giants such as Netflix, as he unveiled a blockbuster deal to buy Canada’s Cineplex chain in a C$2.8 billion (£1.6 billion) deal.
The FTSE 250 firm has offered to buy Toronto-listed Cineplex, which is Canada’s largest cinema operator, for $34 per share in cash. That would add 165 movie theatres to Cineworld, bringing its total estate to 954 sites.
Mooky Greidinger, Cineworld’s boss, said the combination of Cineplex and US firm Regal, which Cineworld agreed to buy two years ago, “will create the leading North American cinema operator”.
When asked about the threat from streaming firms, Greidinger said: “We truly believe Netflix and Amazon are good home entertainment. But they are not competition for us. People will always want to go out.”
He predicts the release later this week of Star Wars: The Rise of Skywalker, will give Christmas sales a strong lift.
Bank Of America, HSBC and Goldman Sachs are working with Cineworld. Scotiabank is advising Cineplex.
