Britain's Cineworld Group sealed an agreement to buy larger U.S. peer Regal Entertainment Group for $3.6 billion in cash. Fred Katayama reports.
UK's Cineworld is buying larger U.S. peer Regal Entertainment for $3.6 billion in cash. That's $23 for every Regal share, a premium of about 12 percent to the company's closing price on Monday. The deal will create the second largest movie theater operator in the world, just behind AMC Entertainment Holdings. ComScore's senior media analyst Paul Dergarabedian: (SOUNDBITE) PAUL DERGARABEDIAN, SENIOR MEDIA ANALYST, COMSCORE (ENGLISH) SAYING: "So I think this deal makes sense. For Cineworld to buy Regal, I think, it's just part of this consolidation that we're seeing going on with the movie theater business. Of course, Dalian Wanda owns AMC and about 11000 plus screens around the world. Cineworld, now through this Regal deal, will have over 9000 screens around the world. I think it's just a way to consolidate the business, to be more focused on the big screen content, and how to deliver that the movie goers, and, also, out to get them off of their couch, away from the streaming services, and into the movie theater." Regal shares shot up on the news. Cineworld fell.