David Ellison and his team are currently exploring the sale of National Amusements, the iconic movie theater chain that played a pivotal role in establishing the Redstone family’s media empire, once successfully led by Shari Redstone. This asset is part of the Redstone family’s holding company, National Amusements, Inc. (NAI), which also includes their stake in Paramount.
Today marked a significant milestone as Paramount’s merger with Skydance was finalized, with Skydance acquiring NAI from the Redstone family for $2.4 billion. This acquisition includes the Norwood, Massachusetts-based theater chain and a controlling interest in Paramount Global. The future of National Amusements remains uncertain, but it is officially on the market.
During a press event today, new Paramount President Jeff Shell noted that interest in the chain is “robust.” National Amusements operates 759 screens across the U.S., U.K., and Latin America under various brands, including Showcase, Cinema de Lux, Multiplex, SuperLux, and UCI. The theaters are located in states such as Massachusetts, New York, Rhode Island, and Ohio, as well as in countries like Argentina, Brazil, and the U.K.
In addition to standard movie screenings, National Amusements offers theater rentals for corporate meetings, sales conferences, product launches, and private events. Their facilities feature restaurants, cocktail lounges, food courts, and concession stands, ensuring a comprehensive experience for visitors. Importantly, all locations are equipped with assistance devices catering to the hearing and visually impaired.
Like many in the industry, National Amusements faced significant challenges during the COVID-19 pandemic, leading to some theater closures and operational struggles, though they fared better than many competitors. Historically, the chain has owned much of the real estate where their theaters are situated, although this may have changed in recent times.
The theater operating landscape has evolved, with many companies open to acquisitions but typically opting for individual theaters rather than entire chains. Major exhibition CEOs, from AMC Entertainment to Cinemark, frequently field questions about potential mergers and acquisitions. On the studio side, Netflix has made headlines by acquiring notable theaters, such as the Plaza in New York City, while Sony Pictures purchased the Alamo Drafthouse circuit last summer. However, there has not been a rush among studios to engage in deals within the theater space.
With the Paramount-Skydance merger officially closed, the leadership team is now focused on defining the future of the company as a streamlined, technology-driven, content-rich media and entertainment powerhouse. They plan to share strategic details during their third-quarter earnings report in November.
For updates on this developing story and the future of National Amusements, stay tuned!
