IMAX (IMAX) Shares See a 3-D Surge On Takeover Rumors
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Shares of IMAX (Nasdaq: IMAX) are surging today on rumors reported in U.K.'s Daily Mail that Sony (NYSE: SNE) could be interested in buying the company for more than $40 per share.
The report cites whispers on Wall Street and have led to a rumor frenzy in the shares today.
Following this mornings rumors, Canadian news service BNN.ca reported that their sources can confirm that IMAX is in serious talks with both Sony and Disney (NYSE: DIS).
Porter Bibb, Managing Partner at MediaTech Capital Partners LLC, told BNN, "I can confirm that both Sony and Disney are in serious talks with IMAX about a takeover, probably at $40 per share or more."
Analysts and investors are still skeptical however. Analyst Eric Wold, who covers IMAX for Merriman Curhan Ford, told StreetInsider.com, "It is very unlikely that something like this will pan out."
Specifically, Wold cited antitrust rules that prevent movie studios from owing theaters chains. Wold stated that while IMAX licenses its theaters, and a deal could theoretically play out, it just doesn't make sense.
In addition Wold pointed out that if Sony owned IMAX, other movie studios would unlikely want to work cooperatively with IMAX, thus limiting content.
Wold stated that out of 64 movies IMAX has released, only 5 were from Sony. So, to date, Sony has seen very little value in IMAX's platform.
Wold rates the shares a Neutral.
Another sell-side analyst, who rates shares at Buy, said a deal makes "strategic sense", but said the reports are very speculative at this point.
IMAX responded to requests from StreetInsider.com for comments on this matter. An Imax spokesperson said, "The first IMAX became aware of these rumors was through yesterday's Daily Mail article. It has been the Company's long-standing policy not to comment on such rumors."
Shares of IMAX are up 15.4% today to $31.04 per share.
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The report cites whispers on Wall Street and have led to a rumor frenzy in the shares today.
Following this mornings rumors, Canadian news service BNN.ca reported that their sources can confirm that IMAX is in serious talks with both Sony and Disney (NYSE: DIS).
Porter Bibb, Managing Partner at MediaTech Capital Partners LLC, told BNN, "I can confirm that both Sony and Disney are in serious talks with IMAX about a takeover, probably at $40 per share or more."
Analysts and investors are still skeptical however. Analyst Eric Wold, who covers IMAX for Merriman Curhan Ford, told StreetInsider.com, "It is very unlikely that something like this will pan out."
Specifically, Wold cited antitrust rules that prevent movie studios from owing theaters chains. Wold stated that while IMAX licenses its theaters, and a deal could theoretically play out, it just doesn't make sense.
In addition Wold pointed out that if Sony owned IMAX, other movie studios would unlikely want to work cooperatively with IMAX, thus limiting content.
Wold stated that out of 64 movies IMAX has released, only 5 were from Sony. So, to date, Sony has seen very little value in IMAX's platform.
Wold rates the shares a Neutral.
Another sell-side analyst, who rates shares at Buy, said a deal makes "strategic sense", but said the reports are very speculative at this point.
IMAX responded to requests from StreetInsider.com for comments on this matter. An Imax spokesperson said, "The first IMAX became aware of these rumors was through yesterday's Daily Mail article. It has been the Company's long-standing policy not to comment on such rumors."
Shares of IMAX are up 15.4% today to $31.04 per share.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
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