IMAX (NYSE:IMAX) is set to boost its presence in 10 facilities across the U.S. operated by Carmike Cinemas (NASDAQ:CKEC). The two companies announced in a joint press release that IMAX systems will be installed in the cinemas, which are either existing complexes or new construction projects. Revenue from the IMAX titles will be shared between the companies.
The terms of the deal were not made public.
The agreement covers Carmike theaters across the U.S., in locations such as Georgia, Tennessee, and Texas.
The two companies already collaborate on cinema projects. Through acquisitions, Carmike currently has eight IMAX systems in its facilities.
In the press release, the companies quoted IMAX CEO Richard Gelfond as waxing enthusiastic about his company's increased footprint. He said it was "delighted to see the continued demand for Imax domestically -- particularly in the Southeast region of the U.S., which continues to present expansion opportunities for the company."
Fool contributor Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends and owns shares of IMAX. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
China's Government Takes Aim at IMAX
IMAX's main rival in China has the company in its crosshairs -- and it has the backing of the Chinese government.
2 Stocks I'd Never Buy, and 1 I'll Consider
All three of these stocks have tumbled more than 20% lower in 2017. Only one of them seems poised to make a comeback.
How IMAX Is Crushing the Rest of the Movie Industry
While most theaters are dealing with declining attendance, audiences are turning to IMAX for a premium experience -- and growth is booming.