IMAX Corporation Explores Potential Sale After Approaching Entertainment Companies as Buyers

IMAX Corporation is reportedly looking into a possible sale and has already started reaching out to entertainment companies that could be interested in buying it, according to people familiar with the matter and reporting from The Wall Street Journal.

The process is still in very early stages. The same sources say there is no guarantee that a deal will actually happen, and things could change as talks continue.

IMAX is known for its large-format movie screens and premium theater experience. The company has become a big part of the modern cinema business, especially as more audiences look for higher-quality viewing experiences.

The possible sale interest comes at a time when premium cinema formats are growing faster than the overall box office. Recent data shows U.S. and Canadian box office sales reached about $2.9 billion so far this year, which is the strongest performance since before the pandemic, according to Box Office Mojo.

Premium screens like IMAX have also been gaining a bigger share of ticket sales. According to EntTelligence, IMAX and similar formats made up around 16% of ticket sales in the U.S. and Canada in early April, up from about 13% in 2021.

IMAX itself has also reported growth in its share of the box office. The company said it accounted for about 5.2% of domestic box office revenue last year, compared to 3.2% in 2019. Big blockbuster films such as “Avatar: Fire and Ash” and “Project Hail Mary” have been important drivers of that growth, especially since they were designed for large-format viewing.

At an investor meeting in December, IMAX CEO Rich Gelfond spoke about the company’s future and how it fits into the wider entertainment industry. He said, “an incredibly valuable player, either as a wholly differentiated publicly traded company or as part of a larger company.” He also recently returned to work part-time after a medical leave due to pneumonia.

The company’s market value is currently around $1.85 billion. That size makes IMAX relatively affordable for larger entertainment companies or media groups, which is one reason it could attract interest if a sale moves forward.

After the report from The Wall Street Journal, IMAX shares jumped more than 10% in after-hours trading, showing that investors reacted quickly to the news.

One of the key questions around any possible deal is how a new owner would handle film distribution. IMAX works with many Hollywood studios, and its screens are used by different companies competing for premium release slots. If a studio owned IMAX, it could raise concerns about whether it would prioritize its own films.

The industry is also shifting as streaming companies experiment more with theaters. Netflix has recently started releasing select films in IMAX before streaming, including a Brad Pitt project directed by David Fincher. It also plans to release the big-budget adaptation “Narnia: The Magician’s Nephew” in IMAX theaters before it arrives on its streaming platform.

For now, the possible sale of IMAX remains uncertain. But the early discussions show that major players in entertainment see value in premium cinema experiences as the movie industry continues to change.

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