Amazon’s latest toe-dip into the brick-and-mortar pool: Landmark Theatres?
Ecommerce giant Amazon has made no secret about its desire to branch out and add to its empire. Some of that branching out has already taken place in the physical world of brick-and-mortar retail (Whole Foods, for example – the health-focused grocery chain it picked up for $14 billion). And some of that branching out has been into the media world (Amazon already owns a film and TV studio, and a music service). Now, it might combine those two trends by purchasing Landmark Theatres.
Amazon’s share price has appreciated by 62% already this year!
Source: Yahoo Finance
Landmark Theatres would vault Amazon into the cinema industry – a potentially interesting place for a company that produces its own films to be in. But that’s assuming the deal comes off. According to people who asked not to be identified because the matter was private, discussions between Amazon and Landmark’s owners (Mark Cuban and Todd Wagner) are in early stages. They added that talks could still fall apart.
Landmark is an interesting property. It focuses on independent and foreign films and has over 50 theatres in 27 markets, including some seriously high-profile locations in places like New York and Chicago. Landmark’s not just another cinema – it’s an arty brand, and its theatres often include coffee bars, lounges, and other experiential flourishes that push it beyond the standard.
Leo Kulp, an RBC Capital Markets LLC analyst, said: “This is probably a move to get broader distribution of film content. Netflix had been discussed as a potential buyer of Landmark for a similar reason.”
Dominion holds Amazon in its Global Trends Ecommerce Fund.
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