IMAX has bucked the trend as the movie-theater business fades - here's why it's so attractive to would-be buyers

By Lukas I. Alpert

The sale of the large-format movie chain could bring interest from tech and media companies and even sovereign-wealth funds, analysts say

IMAX shares have soared on reports that the company is up for sale.

The IMAX movie-theater experience rests on the theory that bigger is better.

Reports that the large-format cinema operator is up for sale have sent its stock soaring and analysts predicting interest from a wide range of prospective buyers - from tech and media companies to sovereign-wealth funds.

IMAX has approached entertainment companies as potential buyers, the Wall Street Journal reported late Thursday. That sent the stock up more than 15% on Friday.

IMAX shares (IMAX) have jumped 45% over the past 12 months.

Sales of tickets for premium screen experiences like IMAX's have been growing faster than sales at typical movie theaters, making up 16% of total sales through April, up from 13% five years ago, according to the entertainment-data tracking firm EntTelligence.

Overall domestic ticket sales have grossed $2.9 billion this year, hitting their highest total since before the pandemic, according to Box Office Mojo, although many exhibition companies have suffered in recent years as consumer interest in moviegoing has declined.

"IMAX's strategic value materially exceeds what is reflected in the current public valuation," Mike Hickey of Benchmark Equity Research wrote in a note to clients. "We continue to believe IMAX has evolved beyond a traditional exhibitor into a premium, asset-light global entertainment technology and distribution platform."

Hickey said he was raising his price target for the company to $60 per share from $44 to reflect "the likelihood of a competitive bidding environment for a uniquely scarce global premium media asset."

Analysts say the prospective sale of IMAX would likely attract the interest of companies like Sony (SONY), Apple (AAPL), Amazon (AMZN), Walt Disney (DIS), Comcast (CMCSA), Netflix (NFLX), Sphere Entertainment (SPHR) and Cinépolis , many of which would have a keen interest in utilizing the exhibition space for their own films.

Other possible buyers include sovereign-wealth funds, particularly in the Middle East, analysts say.

"In our view, IMAX remains a literal 'one-of-one' strategic asset, combining a proprietary global premium large-format network, Filmed for IMAX infrastructure, integrated production technology, filmmaker relationships, and globally recognized premium branding," Hickey wrote.

"We believe the platform would be extraordinarily difficult, time-consuming, and expensive to replicate, particularly as blockbuster filmmaking becomes increasingly optimized around premium formats and immersive theatrical experiences," he added.

-Lukas I. Alpert

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05-22-26 1638ET