Cineworld — Cineplex Deal is Off
CBJ — Cineworld says its huge $2.8 billion deal to acquire Cineplex is off.
Cineworld, based out of London, England, claims certain breaches were made by the Canadian theatre chain that made the transaction unworkable. The specifics of the alleged breaches were not made known. The deal was to have closed at the end of June.
However, Cineplex claims the allegations are false and has already stated it will take Cineworld to court for damages.
The global pandemic has added to the existing woes of theatre chains worldwide, with virtually all of them being shut down. Prior to the pandemic, online streaming services had already been taking a large bite out of corporate profits, and will continue to do so in the future and likely at an even larger rate.