Cuban in Landmark deal with purchase of art house chain
Cuban in Landmark deal with purchase of art house chain
SepT 23, 2003
Mark Cuban, Internet billionaire and owner of the NBA's Dallas Mavericks, has purchased Landmark Theatres for an undisclosed sum, sources close to the deal said Monday.
Few details of the sale are known except that Cuban's business partner, fellow Internet billionaire Todd Wagner, will become CEO of Landmark's 55 art house theaters nationwide. Sources said the parties are expected to announce the final details of the agreement after regulatory approvals are issued.
Landmark has essentially been on the auction block since 2001, when Oaktree Capital Management pulled the indie chain's parent, Silver Cinema, out of bankruptcy for about $40 million. In January, the company's $80 million sale to Toronto-based Onex Corp., the parent company of Loews Cineplex, fell apart when the two companies claimed that they were doubtful the merger would receive the necessary regulatory approvals because of antitrust concerns.
But the on-again, off-again sale process hasn't stopped the indie chain from developing additional properties. The company is involved in adding an additional 21 screens to its circuit by year's end, expanding into Atlanta, Washington and Edina, Minn.
The Landmark acquisition is the latest move by Cuban and Wagner to expand their significant investment portfolio in the entertainment arena. The two formed a Dallas-based company last year, 2929 Prods., shortly after they paid close to $300 million to acquire the library of Rysher Entertainment Group from Cox Enterprises. The transaction gave 2929 some domestic and international rights to well-known properties including "Highlander" and "Nash Bridges."
Since then, the two have invested in Dallas-based Magnolia Pictures, which recently released the critically acclaimed documentary "Capturing the Friedmans" and owns three movie theaters, including popular art house the Magnolia in Dallas. 2929 also has a stake in Immortal Entertainment, a Los Angeles-based production company.
Cuban is co-founder of HDNet, one of the few full-time sources of high-definition programming in the United States. He also owns a 5% stake in indie production and distribution company Lions Gate Entertainment.
Representatives for Cuban, Landmark and Oaktree Capital declined comment late Monday.
Few details of the sale are known except that Cuban's business partner, fellow Internet billionaire Todd Wagner, will become CEO of Landmark's 55 art house theaters nationwide. Sources said the parties are expected to announce the final details of the agreement after regulatory approvals are issued.
Landmark has essentially been on the auction block since 2001, when Oaktree Capital Management pulled the indie chain's parent, Silver Cinema, out of bankruptcy for about $40 million. In January, the company's $80 million sale to Toronto-based Onex Corp., the parent company of Loews Cineplex, fell apart when the two companies claimed that they were doubtful the merger would receive the necessary regulatory approvals because of antitrust concerns.
But the on-again, off-again sale process hasn't stopped the indie chain from developing additional properties. The company is involved in adding an additional 21 screens to its circuit by year's end, expanding into Atlanta, Washington and Edina, Minn.
The Landmark acquisition is the latest move by Cuban and Wagner to expand their significant investment portfolio in the entertainment arena. The two formed a Dallas-based company last year, 2929 Prods., shortly after they paid close to $300 million to acquire the library of Rysher Entertainment Group from Cox Enterprises. The transaction gave 2929 some domestic and international rights to well-known properties including "Highlander" and "Nash Bridges."
Since then, the two have invested in Dallas-based Magnolia Pictures, which recently released the critically acclaimed documentary "Capturing the Friedmans" and owns three movie theaters, including popular art house the Magnolia in Dallas. 2929 also has a stake in Immortal Entertainment, a Los Angeles-based production company.
Cuban is co-founder of HDNet, one of the few full-time sources of high-definition programming in the United States. He also owns a 5% stake in indie production and distribution company Lions Gate Entertainment.
Representatives for Cuban, Landmark and Oaktree Capital declined comment late Monday.
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