Cinamerica dealt

TW, Viacom to sell circuit for $165 mil

NEW YORK — Time Warner Inc. and Viacom Inc. on Monday finally confirmed their plans to sell Cinamerica/Mann Theaters to a joint venture of investment firm Warburg Pincus and former Cinemaworld president Jeff Lewine for a price believed to be $165 million.

As reported (Daily Variety, Oct. 1), TW and Viacom said Monday they had signed a definitive agreement to sell the 374-screen circuit to the joint venture, known as WestStar Holdings. The price was not disclosed but sources confirmed the reported price of $165 million.

The sale represents a massive loss for Time Warner, one of whose predecessor companies — Warner Communications Inc. — paid $150 million for its 50% stake in 1988.

Since then, however, the circuit has come under heavy competition from new megaplexes. Cinamerica’s theaters are based in California and Colo-rado. In San Diego, megaplexes have sharply cut into Cinamerica’s reve-nues.

The price is believed to be more than eight times Cinamerica’s earnings before interest, taxes, depreciation and amortization. In addition, WestStar will have to put in more money to renovate the circuit. Details of the group’s plans for the circuit are not known and Lewine did not return calls.

Warburg Pincus is only the latest of a group of leveraged buyout firms to put money into theater exhibition. In recent weeks Kohlberg Kravis Roberts agreed to acquire Act III Theaters for $665 million and Hicks Muse Tate & Furst agreed to buy United Artists Theater Circuit for $850 million.

All the firms believe the industry is ripe for consolidation, although many observers question the prices being paid.

Viacom and Time Warner both plan to use the money raised from the sale for debt reduction. The companies said the deal was expected to close by the end of the year.

More Biz

  • (c1920) On/Off SetHollywood History

    Disney to Lease Fox Lot for Seven Years (EXCLUSIVE)

    NEW YORK — Time Warner Inc. and Viacom Inc. on Monday finally confirmed their plans to sell Cinamerica/Mann Theaters to a joint venture of investment firm Warburg Pincus and former Cinemaworld president Jeff Lewine for a price believed to be $165 million. As reported (Daily Variety, Oct. 1), TW and Viacom said Monday they had […]

  • Ajit Pai

    FCC Launches Review of TV Station Ownership Cap

    NEW YORK — Time Warner Inc. and Viacom Inc. on Monday finally confirmed their plans to sell Cinamerica/Mann Theaters to a joint venture of investment firm Warburg Pincus and former Cinemaworld president Jeff Lewine for a price believed to be $165 million. As reported (Daily Variety, Oct. 1), TW and Viacom said Monday they had […]

  • ESPN

    Fox's Regional Sports Outlets Could Serve as Balm for Disney's ESPN

    NEW YORK — Time Warner Inc. and Viacom Inc. on Monday finally confirmed their plans to sell Cinamerica/Mann Theaters to a joint venture of investment firm Warburg Pincus and former Cinemaworld president Jeff Lewine for a price believed to be $165 million. As reported (Daily Variety, Oct. 1), TW and Viacom said Monday they had […]

  • DEADPOOL

    Disney-Fox: Ryan Reynolds, James Gunn and More React to Mega-Merger

    NEW YORK — Time Warner Inc. and Viacom Inc. on Monday finally confirmed their plans to sell Cinamerica/Mann Theaters to a joint venture of investment firm Warburg Pincus and former Cinemaworld president Jeff Lewine for a price believed to be $165 million. As reported (Daily Variety, Oct. 1), TW and Viacom said Monday they had […]

  • Dwayne Johnson president 2024

    Dwayne Johnson Strongly Considering Presidential Run in 2024 (EXCLUSIVE)

    NEW YORK — Time Warner Inc. and Viacom Inc. on Monday finally confirmed their plans to sell Cinamerica/Mann Theaters to a joint venture of investment firm Warburg Pincus and former Cinemaworld president Jeff Lewine for a price believed to be $165 million. As reported (Daily Variety, Oct. 1), TW and Viacom said Monday they had […]

  • Ajit Pai net neutrality vote

    Security Concern Halts FCC Net Neutrality Vote

    NEW YORK — Time Warner Inc. and Viacom Inc. on Monday finally confirmed their plans to sell Cinamerica/Mann Theaters to a joint venture of investment firm Warburg Pincus and former Cinemaworld president Jeff Lewine for a price believed to be $165 million. As reported (Daily Variety, Oct. 1), TW and Viacom said Monday they had […]

More From Our Brands

Access exclusive content