AMC theaters to get Imax screens
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Imax Corp., the operator of giant-screen movie theaters, announced plans Friday to install 100 digital projection systems in AMC Entertainment Inc. theaters.
Shares of Imax, based in Mississauga, Canada, climbed $2.68, or 58%, to $7.32, its biggest gain ever.
The deal would double the number of Imax screens in North America, adding momentum to the company’s effort to introduce digital projection systems, which it plans to release in mid-2008. The system eliminates film costs, which were prohibitive for some studios, Chief Executive Bradley Wechsler said.
Imax shows about six films a year from Hollywood studios, co-CEO Richard Gelfond said. With the digital systems, that would increase to 10 or 11 a year, he said.
Last month, Imax agreed to show the first 3-D films from DreamWorks Animation SKG Inc., starting in 2009. The agreement ensures a source of 3-D films through 2010, including the fourth installment of the “Shrek” series, Imax said at the time.
The venture with AMC would add $30 million to $35 million to earnings before interest, taxes, depreciation and amortization annually, Wechsler said.
The first 50 installations will begin in July. AMC is the Kansas City, Mo.-based unit of Marquee Holdings Inc.
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