Cineplex, Canada's largest movie-theatre chain, has faced questions about its succession plan since former CEO Ellis Jacob announced his retirement in June, 2025.DUANE COLE/The Globe and Mail
Cineplex Inc. CGX-T has named a new chief executive officer and launched a strategic review that could involve a sale of the company.
Canada’s largest movie-theatre chain announced on Wednesday that Bill Walker, who previously led competitor Landmark Cinemas, will take over as CEO, effective immediately.
Cineplex has faced questions about its succession plans for more than a year, since Ellis Jacob announced last June that he would retire after more than two decades at the helm of the company. Mr. Jacob will remain as a special adviser to the board of directors until the end of this year.
Mr. Walker will oversee the dominant player in Canada’s movie-theatre industry as Cineplex considers its future. The board’s strategic review “will consider a range of alternatives, including, but not limited to, a potential sale of the company,” the company said in a press release on Wednesday morning.
“Cineplex has a strong market position, a portfolio of leading entertainment assets, powerful consumer brands, and attractive long-term growth opportunities. However, we believe the company’s current market valuation may not fully reflect the strength of its business and long-term prospects,” board chair Phyllis Yaffe said in the release. “While we remain highly confident in the company’s future prospects, we are committed to evaluating all available opportunities and remain open-minded regarding potential outcomes.”
It is not the first time Cineplex has been on the market. In 2019, Cineworld reached a $2.2-billion deal to acquire the company, before pulling out of the agreement months later as the pandemic shocked the industry.
Cineplex’s stock price has not fully recovered from that shock. After rising to $34.10 shortly after the Cineworld deal was announced, the shares plunged to an all-time low of $4.54 in the fall of 2020.
Reaction to the news on Wednesday was muted, with the share price falling slightly to less than $12.50 at midday.
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There has been chatter in recent months about Cineplex considering a sale. In April, Bloomberg reported that the company had been in touch with industry peers such as Cinemark Holdings Inc. and Regal Cineworld Group, to gauge interest in a potential deal.
“Six years ago, when I sold the company, I believed that consolidation was important because studios were consolidating, and exhibitors had to look at the same opportunities,” Mr. Jacob said in an interview with The Globe and Mail in May. “But you can only do it when you’re in a stronger position, and that’s what we are working towards − and others in the business are doing the same thing.”
Cineplex has hired co-financial advisers Goldman Sachs and TD Securities as it undertakes the review. Goodmans LLP will act as legal counsel. The company has not set a timeline for the process.
Mr. Walker led Landmark Cinemas for nine years, which included the company’s 2017 sale to Belgium-based Kinepolis Group NV – an experience that will inform his leadership at Cineplex as it potentially seeks a buyer.
“Certainly, different situations, but I think at its core, it’s about building a business that can show the potential to grow continuously into the future,” Mr. Walker said in an interview with The Globe on Wednesday.
Cineplex is not the only company mulling its options. Europe’s largest cinema operator, Vue, is exploring an initial public offering on the London Stock Exchange or a possible sale of the company, the Financial Times reported last week. Vue’s founder and CEO, Tim Richards, told the newspaper that it was the right time to think about the next steps for the company as the industry has been regaining strength after “six years of hell.”
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Cinema operators have been given a boost as streaming services have committed to longer windows of time when the movies they produce will show exclusively in theatres before being listed for home viewing.
Strong presales of tickets for the December releases of Dune: Part Three and Avengers: Doomsday are also encouraging, Mr. Walker said, adding that a diverse film slate going into 2027 should be positive for the industry.
Cineplex is at a point where the business is recovering, the box office is growing and the company is working on improving its profitability, he said.
“The ecosystem is stronger. There’s more interest in the industry overall, and that’s a part of why we’re entering into this process,” Mr. Walker said.
The new CEO’s experience includes leadership positions in the retail and commercial real estate industries. Before joining Landmark, he was vice-president of operations for Crombie Real Estate Investment Trust and served as vice-president of operations for Empire Theatres. After leaving Landmark in 2023, Mr. Walker served as CEO of Calgary-based retailer Coast Appliances.