Billionaire media mogul Sumner Redstone needs a buyer for National Amusements Inc.'s movie theaters to pay off his $1.6 billion in debt. Finding potential bidders won't be a problem, but finding a buyer willing to pay the estimated $1 billion price tag -- that Redstone reportedly values the 1,500 movie theaters -- may be the sticking point.
Reuters reports Friday that strategic rivals and private equity firms for National Amusements' U.S. and U.K. theater chains have shown some interest. But The Hollywood Reporter thinks otherwise, saying that bidders don't want all 1,000 plus theaters:
"Regal Cinemas, Cinemark and others might be quick to bid on a select number of the theaters, which are spread nationwide with a key concentration of screens in the Northeast. But for now, the parties appear to be waiting for one another to blink regarding rules of engagement in the auction."
The first round of bids is due in three to four weeks, according to Reuters. With credit tight and the falling global economy putting a crunch on people's discretionary income, the movie chain will likely take longer to sell if Redstone is unwilling to lower his expectations. One scenario that many suggest is more likely: selling the movie operator in parts. With Redstone's debt looming, he'll likely have no choice but to take what he can get with his debt due by the end of next year. - Gerald Magpily
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Sumner Redstone would have to pay someone to be a friend. He has screwed so many people over his business career that he would be hard pressed to find someone who would help him through tough times. He now reaps what he has sewn. His immense greed has consumed him and his empire. He will die a penniless and pitiful soul tormented by his business failure and the detachment of those family members that are now alienated from him. He has lost the kingdom. The king is dead. The king is dead. He will eventually lose Viacom and CBS and all of his other media empires. No one could be more deserving of total failure and ruin than this tyrant. How does it feel to be the victim Sumner?
Good day!