Cinemark Argentina Buys Out Hoyts Multiplexes
The company increases its share of market in anticipation of a move into the region by Mexican circuit Cinepolis.
BUENOS AIRES – Cinemark Argentina has bought the entire operation of Hoyts in the country in a pre-emptive strike ahead of an expected move into the country by Mexican exhibitor Cinepolis.
An industry source told THR the main reason for Cinemark’s big buy is to get a stronger and bigger stand in the market before the rumored yet unconfirmed arrival of Mexican theater chain Cinepolis in Argentina. Cinepolis is the fourth largest exhibitor in the world and the biggest one in Latin America, spread throughout Mexico, Brazil, Guatemala, El Salvador, Costa Rica, Panama, Colombia, Peru, India, and the U.S.
Negotiations had begun months ago, but the final transaction was completed today, according to a news report from local website Cinesargentinos. Hoyts was the main exhibitor chain in the country, with 95 screens distributed in 10 multiplex theaters, a 45% share of the market, and 9 million tickets sold in 2010. No sale prices have been released yet, and neither company has released any statement or information about the sale.
Cinemark Holdings, Inc. operates more than 5,000 screens all over the world, includin Argentina, Brazil, Mexico, and 11 other countries in Latin America. Until yesterday, Cinemark Argentina had 80 screens in 10 theaters. Now the number of screens will amount to 175, placing Cinemark in a comfortable first place against competitors Village and Showcase.