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PVR acquires Cinemax for INR3.95 bil
PVR has become the largest player in the multiplex market with its acquisition of Cinemax, which owns 138 screens. PVR now owns 351 screens at 85 locations. This gives it a market share of 27%. It plans to merge Cinemax with its brand in the future. The acquisition is expected to be completed in phases after PVR acquires the promoter’s stake. The PE firms, Multiples and L Capital, were also involved in the deal and will be offered stakes in PVR.1
IMAX to expand its presence in India
IMAX is in talks with Indian producers to produce movies in the IMAX format. It currently has four screens in the country and seeks to increase this to more than 50 in the next five years. Although IMAX has been present in India for more than a decade, it does not have a significant presence in the country, since it does not develop local content and relies solely on Hollywood content. It has now signed up with Yashraj for Dhoom 3 and plans to announce more Hindi movie projects shortly.2
Kamal Haasan planning to release Vishwaroopam on DTH
Kamal Haasan is planning to release his Tamil movie, Vishwaroopam, on the DTH platform a day ahead of its release in movie halls and multiplexes, and has signed deals with Airtel and Dish TV. The price of the film on DTH will be INR1, 000 on a pay-per-view basis. This is welcomed by film producers in the Tamil film industry, since they expect that this will open a new revenue stream for them. However, the decision is strongly opposed by theater owners and distributors, who are worried that it will cripple their businesses.3
1 “PVR buys screen multiplex chain Cinemax for INR3.95 billion,” The Economic Times, 30 November 2012, via Factiva.
2“Imax Corporation plans to raise number screens to 50 in 5 years,” The Economic Times, 29 November 2012, via Factiva.
3“Kamal Haasan's plan to show Vishwaroopam on DTH irks theatre owners,” The Economic Times, 11 December 2012, via Factiva.