Riyadh: Saudi Entertainment Ventures (SEVEN) is restructuring its joint venture partnership with US-headquartered AMC Entertainment Holdings (AMC), it said on Tuesday.
Under the new agreement, SEVEN will acquire AMC’s equity stake in the cinema business in KSA to gain 100 per cent ownership. SEVEN will also retain intellectual property (IP) rights and the AMC Cinemas brand name in the Saudi market. “The acquisition comes at a critical time as SEVEN prepares itself for the massive operations of developing 21 integrated entertainment destinations to fulfil the mandate of establishing the entertainment sector nationwide,” the entertainment venture said in a statement. “It further unlocks opportunities to develop Saudi talent, localise expertise, and create a sustainable entertainment sector in accordance with the highest international standards.”
SEVEN confirmed that it will continue to partner with AMC through a franchise agreement, enabling it to keep the brand name of AMC Cinemas. Under the SEVEN-AMC partnership, AMC Cinemas currently operates 85 screens across the Kingdom.
“Our partnership with AMC – the world’s largest cinema chain, was crucial in developing knowledge, technical expertise and equipping us with the know-how to build up institutional capacities and support growth in Saudi Arabia’s entertainment industry,” said Abdullah Al Dawood, Chairman of SEVEN. “The acquisition of AMC’s stake in Saudi Arabia reflects SEVEN’s long-term strategy of bringing unparalleled experiences to the people and visitors of the Kingdom and contribute to the Saudi Vision 2030 goals.”
SEVEN aims to strengthen its offerings in the Saudi entertainment market, which is growing at an annual rate of 47.65 per cent and is expected to touch 4.4 billion riyals by the end of 2030. SEVEN had announced plans in November 2022 to invest 50 billion riyals to develop 21 integrated entertainment destinations with over 150 innovative attractions, in partnership with prominent international brands, across 14 cities in Saudi Arabia.