Cineworld Plunges, Cineplex Soars on $1 Billion Court Ruling Over Deal
- Court orders U.K.’s Cineworld to pay former Canadian suitor
- Analyst says decision is “dire news” for theater chain
This article is for subscribers only.
Cineworld Group Plc plunged as much as 40% after a court ordered the world’s second-largest cinema chain to pay nearly $1 billion in damages -- more than its entire market value -- over an aborted takeover bid.
A Canadian court ordered the British company to pay the money on Tuesday after it scrapped a plan to buy Toronto-based Cineplex Inc. as the pandemic forced entertainment venues to close. The $1.6 billion deal would have made Cineworld North America’s largest movie-theater operator.