AMC Offloads Saudi Joint Venture

 AMC will be jettisoning direct management of its Saudi Arabian cinemas to their local partner, Saudi Entertainment Ventures, in another bid to tighten the company’s ailing balance sheet. While the theaters will continue to operate, it will be in a licensing-only relationship instead of direct management. Entertainment lawyer Brandon Blake, from Blake& Wang P.A, has more details. 

Brandon Blake


Operating Since 2018

AMC, a global mega-exhibitor running 950 theaters and 10,500 screens around the world, has been operating in the Saudi Arabian area since 2018. The joint venture has been sold to Saudi Entertainment Ventures for a reported $30M, which will return its original investment stake, and allow them to operate the AMC IP under license instead. 


This will affect 13 existing operational AMC cinemas, as well as allow for future locations to use the AMC name. 

Part of a Long-Term Plan

While the recent issues caused by the protracted COVID shutdowns doubtless have a hand in the decision, AMC is also keen to reiterate that it not only wanted to ‘bring moviegoing to the Saudi people,’ but also to train local staff and management to operate independently within the area. The move is being heavily characterized as simply the logical growth point for that latter goal, with no mention of the return-on-stake the sell-off offers. Do we entirely believe that’s the only driving force? With a debt load as high as they’re currently carrying, likely not, but it is as good a reason as any. 


Saudi Arabia itself is showing an increasing interest in both partnerships and investments within the entertainment and Hollywood ecosystems, with considerable investment into entertainment assets over the last few years from both the Kingdom itself as well as Saudi Arabian investment companies. It will be interesting to see how this new development works with that overall trend, and if the presence of a Saudi-run and managed theatrical chain within its borders will open up any further doors in the area. 






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