Amazon vying for Landmark Theaters
LOS ANGELES: Amazon.com Inc is in the running to acquire Landmark Theaters, a move that would vault the e-commerce giant into the brick-and-mortar cinema industry, said sources.
The company was vying with other suitors to acquire the business from Wagner/Cuban Cos, which is backed by billionaire Mark Cuban and Todd Wagner, said sources.
The chain’s owners had been working with investment banker Stephens Inc on a possible sale, said the people.
No final decisions have been made, and talks could still fall apart.
Pushing into movie theatres would follow Amazon’s expansion into myriad other forms of media, including a film and TV studio and music service.
With Landmark, it gets a chain focused on independent and foreign films with more than 50 theatres in 27 markets, including high-profile locations in New York, Philadelphia, Chicago, Los Angeles and San Francisco.
Landmark’s theatres are known for art-house fare, and some high-end locations include coffee bars or lounges, setting them apart from the typical movie experience.
“This is probably a move to get broader distribution of film content,” said Leo Kulp, an analyst with RBC Capital Markets LLC. “Netflix had been discussed as a potential buyer of Landmark for a similar reason.”
The possible move was viewed positively by investors, who saw it as a sign that Amazon wasn’t looking to disrupt moviegoing and was supportive of the theatrical experience, said Kulp.
Though the acquisition price for Landmark would likely be small, it would mark a significant new incursion by Seattle-based Amazon into the physical world.
The online retailer had acquired Whole Foods for US$13.7 billion (RM56.3 billion) last year.