AMC Entertainment sells stake in Saudi Arabian theater company to local partner for $30 million

AMC Entertainment said Saudi Entertainment Ventures (SEVEN) will buy out its investment in theater business Saudi Cinema Company for $30 million.

AMC said the deal required it to move from a management and investment role with SCC to a “licensing-only relationship”. The current AMC Theaters and future locations operated by SCC will retain the AMC Theaters name and other IPs through the license agreement.

The agreement dates back to 2017, when AMC entered into a non-binding memorandum of understanding with the Public Investment Fund of Saudi Arabia to explore bringing a theatrical exhibition to the kingdom for the first time since the 1980s. AMC hosted the country’s first film screening in 2018 in King Abdullah Financial District, Riyadh. It partnered with Saudi Entertainment Ventures to form SCC to develop and operate additional venues across the Kingdom.

Over the next four years, AMC, in partnership with SEVEN, opened an additional 12 locations with more on the way, mentoring the business through Covid and hiring and training corporate functions and theater management and staff.

“When the joint venture was established, it had two objectives. First, to bring the Saudis to the cinema. Secondly, and equally important, to train a theater management and business team so that the company can be managed locally in the Kingdom at some point in the future. More than five years since our first trip to Saudi Arabia and almost five years since we opened our first theater there, that point in the future has now arrived. This announcement and agreement is the natural next step in this process.”

“We have tremendous confidence in the team running these cinemas and moving the business to the next phase just as we envisioned from the beginning. We look forward to continuing our relationship with SCC and the wonderful people at SEVEN to bring the AMC movie experience to Saudi audiences for years to come,” he said.