If you’re in the market for about 1,700 80-foot wide projection screens, then you’re in luck. According to the Wall Street Journal, cinema technology company IMAX is exploring a potential sale that would put its unique high-resolution viewing experience under the control of new ownership.
Details on a potential sale are pretty sparse. According to CNBC, IMAX isn’t actively putting a “For Sale” sign out front and taking bids, nor is it pitching potential acquirers on why they should get into the IMAX business. But the company has reportedly held some “preliminary talks” through intermediaries. The fact that Wall Street responded positively—IMAX’s share price spiked 15% on Friday at the time of publication—to the speculation probably means the company will feel encouraged to take a sale from rumor to reality.
The Journal reports that IMAX is primarily targeting “entertainment companies” as potential buyers, which makes sense given the company is pretty firmly entrenched in the entertainment business. Of course, what an “entertainment company” is isn’t as clear as it once was. Maybe the tech giants like Amazon or Apple, which have entertainment arms (and don’t seem to actively hate the theatrical experience the way Netflix does), would want to get in on a deal. Or maybe Netflix, which seems to finally be opening up to the idea of theatrical releases, would buy up IMAX to give itself a premium brand in the space.
Screen space has also gotten considerably more competitive over the last few years, with big event films vying for their time on the best screens. For instance, the Dune trilogy that is scheduled to hit theaters later this year has already locked in the premium formats, which left Disney out in the cold for Avengers: Doomsday. As a result, Disney made up an entirely new format called Infinity Vision that doesn’t really compete with IMAX but is supposed to have that premium flavor.
For that reason, Disney seems like a prime buyer to target, because Infinity Vision really does pale in comparison to IMAX. That certification system—which requires a 50-foot-wide screen, laser projection, and 7.1 surround-sound system from Dolby—would be compatible with about 5,500 screens globally, according to Bloomberg. That’s nearly three times as many as meet the IMAX standard, but it’s also a pretty dramatic drop-off in terms of the technical quality. IMAX remains a singular experience in that regard, and has name recognition that Disney would have to manufacture for Infinity Vision (a bad name).
While much has been made of the demise of movie theaters, IMAX has kinda been crushing it. The company reportedly generated a record $1.28 billion at the global box office last year and was one of the few theater stocks to actually see its value climb. If anything, that is probably another signal of a broader trend across the economy: premium experiences are big money makers while cheaper options languish.
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