Why Movie Theaters Could Be the Next Big Acquisition Target
After a flurry of acquisitions in the gaming industry, investors looking to get ahead of future deals may be wondering which industry faces consolidation next. The answer could lie in movie theaters.
In 1948, the Supreme Court ruled in United States v. Paramount Pictures, Inc. that studios cannot own theaters due to antitrust laws. However, a federal judge granted The Department of Justice's motion to lift the "Paramount Decree" on August 7, 2020, starting a two-year sunset termination period.
After the decree ends in August 2022, movie studios like Disney (NYSE: DIS) may look to enter the theatrical distribution business the quickest way possible: acquiring movie theater operators.
Source Fool.com
