IMAX explores sale as takeover speculation sends stock soaring

IMAX is reportedly exploring a sale after approaching entertainment companies as potential buyers. Shares surged up to 16% on the news, but a long list of interested parties comes with a long list of conflicts of interest.

There has been a lot of merger and acquisition activity in the industry recently. Paramount Skydance eventually emerged as the victor in the battle for Warner Bros. Discovery, ARRI was sold, GoPro is exploring its options, and Nikon’s stock spiked recently on rumors of the company courting new suitors following its latest disappointing financials.

That Nikon rumor seems to have fizzled out just in time to be replaced by one concerning one of the biggest names in the business: IMAX.

According to a report in The Wall Street Journal, IMAX is exploring a potential sale, with the company having approached entertainment companies as possible buyers. Shares jumped more than 10% on the news — and climbed further the following day, with some estimates putting the surge as high as 15–16% — as investors responded enthusiastically to the prospect of an acquisition.

The talks are apparently at an early stage, IMAX is not commenting publicly, and there is no guarantee a deal materialises. But that hasn't dampened the speculation.

Avatar: Fire and Ash is among the recent blockbusters that has contributed to IMAX's growing share of the North American box office

The news breaks as IMAX reaffirmed it expects to deliver a record $1.4 billion in global box office revenue from its locations globally in 2026, off the back of strong performances from Project Hail Mary and Avatar: Fire and Ash. Its share of US domestic box office has grown to 5.2% last year, up from 3.2% in 2019, despite IMAX screens accounting for just 1% of all cinema screens in North America.

Indeed, premium formats, led by IMAX, grabbed 16% of US and Canadian ticket sales through early April this year as people look for increasingly intense experiences when they head out to the multiplex.

Potential suitors

So, who would buy it? The fact that the media and analysts have come up with such a long list of names to attach to a potential buyer suggests that no-one really knows. And there are huge conflicts of interest involved with most potential buyers. IMAX release windows are fiercely contested, and the thought of one studio acting as a gatekeeper granting access to them would likely be intolerable to the rest of the industry. Likewise with the streamers (and even Netflix has started releasing its films in IMAX before dropping them to give them a bit more traction with the audience).

Another cinema chain? That would be contested too. However, the Trump administration has proved to have a very light regulatory touch if the right buyers are involved, so any previous norms here should be considered suspended for at least the next two and a half years. Private equity would avoid any conflicts, though, and such is the interest in the format at the moment that it may even appeal to companies outside the media and entertainment bubble.

History repeats itself

IMAX, of course, has one of the hottest tickets of the summer. Christopher Nolan's upcoming The Odyssey is the first film shot entirely on IMAX cameras and is maxing out sales in theatres worldwide. However, only 41 theaters worldwide will be capable of a true 70mm screening, some of which are reportedly struggling to find qualified projectionists, hinting that there is pent up demand there if the investment in facilities and infrastructure can match it. For once, IMAX seems to be approaching the subject of a sale from the position of strength.

Long-term IMAX investors are no strangers to sale speculation. The Toronto-based company has sounded out the market for a possible sale or merger before, only to pull back when suitable bids didn't materialise. It has almost been a Homeric odyssey in itself, but maybe it’s time for this chapter of its story to come to a conclusion.