IMAX said to be exploring sale, shares surge

(Sharecast News) - IMAX shares surged on Friday following a report the cinema firm is exploring a sale and has approached entertainment companies as potential buyers.

According to the Wall Street Journal, citing people familiar with the situation, the sale process is in early stages and may not result in a deal.

The WSJ noted that IMAX's search for a buyer comes as premium theatrical experiences are growing faster than the overall box office. Movies have grossed about $2.9bn domestically this year, it noted, which is the highest total for the comparable period since before the pandemic, according to Box Office Mojo.

At an investor meeting in December, IMAX chief executive Rich Gelfond said his firm will be "an incredibly valuable player, either as a wholly differentiated publicly traded company or as part of a larger company".

At 1445 BST, the shares were up 16% at $39.30.