LEAWOOD, Kan.--(BUSINESS WIRE)--AMC Entertainment Holdings, Inc., (NYSE:AMC and APE), the largest theatrical exhibitor in the United States, in Europe & the Middle East and in the world, today announced that following the successful launch of movie theatre operations in the Kingdom of Saudi Arabia in partnership with Saudi Entertainment Ventures (SEVEN), the Company has reached an agreement to transition from a management and investment role in the Saudi Cinema Company (SCC) to a pure licensing relationship. The current AMC Cinemas and future locations operated by SCC will retain the AMC Cinemas name and other IP through a licensing agreement.
In 2017, AMC announced it had entered into a non-binding memorandum of understanding with the Public Investment Fund (PIF) of Saudi Arabia, with the intention of exploring the possibility of bringing theatrical exhibition to the Kingdom for the first time since the 1980s. AMC hosted the country’s first movie screening on April 18, 2018, at King Abdullah Financial District, Riyadh. It partnered with the PIF’s Saudi Entertainment Ventures (SEVEN) to form SCC in order to develop and operate additional locations across the Kingdom.
During the next four years, in collaboration with SEVEN, AMC opened another 12 locations with more in the pipeline, guided the company during the COVID-19 pandemic, all along, hiring and training corporate functions and theatre management and staff with the purpose of eventually turning over operations to local management.
As part of the agreement, SEVEN will buy-out AMC’s $30 million dollar investment in SCC.
AMC Chairman and CEO Adam Aron commented: “When the joint venture was created, it had two goals. First, to bring moviegoing to the Saudi people. Second, and equally important, to train a theatre management and corporate team such that at some point in the future, the enterprise could be run locally within the Kingdom. After more than five years since our first trip to Saudi Arabia and nearly five years since we opened our first theatre there, that point in the future is now. This announcement and agreement is the natural next step in this process.”
Aron continued, “During the last five years we’ve opened 13 beautiful theatres, hired and trained so many Saudi nationals, endured a global pandemic, and, perhaps most importantly, helped bring movies to the Saudi people. In making this transition, we have enormous confidence in the team running these theatres and the venture is moving to the next stage exactly as we envisioned at the time we started. We look forward to continuing our relationship with SCC and the great people at SEVEN in bringing the AMC movie-going experience to Saudi audiences for years to come.”
About AMC Entertainment Holdings, Inc.
AMC is the largest movie exhibition company in the United States, the largest in Europe and the largest throughout the world with approximately 950 theatres and 10,500 screens across the globe. AMC has propelled innovation in the exhibition industry by: deploying its Signature power-recliner seats; delivering enhanced food and beverage choices; generating greater guest engagement through its loyalty and subscription programs, web site and mobile apps; offering premium large format experiences and playing a wide variety of content including the latest Hollywood releases and independent programming. For more information, visit www.amctheatres.com.
Category: Company Release