Featured Post

Latest Gold News

Klondike retracts misleading claims Sentiment for gold rising Some people will never get gold This billionaire quickly adding to gol...

Friday, December 31, 2010

IMAX (Nasdaq: IMAX) Soars on Sony (NYSE:SNE) Takeover Rumors

The Daily Mail in the UK has been the source of several major rumors lately, and the latest is the assertion IMAX (Nasdaq:IMAX) may be taken over by Sony (NYSE:SNE).

All of this is built upon speculation rather than sources, as the Daily Mail said "whispers" on the Street generated the story.

But when you dig into the matter, it's highly unlikely the bid would be made based on antitrust rules which don't allow theater chains to be owned by movie studios.

Technically in some cases it may work out though, as IMAX does license its theaters, meaning they may not be considered a chain.

Other challenges to the deal would be whether or not other studios would allow their content to go to an Sony-owned IMAX.

It will be surprising if the rumors turn out to be true, but even if they are, it would be an uphill climb to make the deal happen.

Sony was trading at $35.74, up $0.17, or 0.48 percent, as of 11:58 AM EST. IMAX was trading at $30.90, gaining $4.04, or 15.04 percent.

1 comment:

Anonymous said...

It's a win situation for both Sony, and Imax if this goes through, however don't be surprised to see Disney, Netflix or another company jump in and throw a spike in the wheel or attempt an unfriendly takeover.