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On Monday, U.K.-based cinema chain Cineworld Group announced it had signed an agreement to acquire Canada-based cinema chain Cineplex in a $2.8B CAD ($2.1B USD) friendly takeover deal as theaters struggle with declining attendance amid increased competition for moviegoers’ attention.
In an attempt to diversify its business and counteract declining attendance, Cineplex created an amusement and leisure segment that includes a focus on esports. The company owns the World Gaming Network, the Collegiate Starleague, and the Canadian Championship Series.
Cineworld agreed to pay $34 CAD ($25.91) per Cineplex share in cash, amounting to a 42% premium to the closing price for the chain’s shares on the Toronto Stock Exchange on Dec. 13, 2019.
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