Chennai’s iconic Sathyam Cinemas, now known as SPI Cinemas that brought in a paradigm shift in the way people watch movies, will be acquired by multiplex chain PVR in a deal valued at Rs 850 crore.
Acquiring SPI Cinemas, which has more than 50 screens in Chennai and multiplexes in Puducherry and Bengaluru, Guntur and other cities, will make PVR the undisputed leader in the multiplex industry in South India.
Though PVR will buy out 71.7% shares, SPI Cinemas’ Kiran M Reddy and Swaroop Reddy, the duo credited with building the SPI empire from the five-screen Sathyam Cinemas in Royapettah in Chennai, will continue to be associated with the business and will provide “strategic guidance in integrating the business with PVR.”
From popcorn to the cold coffee, Sathyam Cinemas offered a quintessential movie-going experience for people in Chennai for more than two decades. The company also acquired a few single screens and converted them into multi-screen theatres in Chennai, almost monopolising the multiplex industry in the city.
SPI Cinemas runs multiplexes under Sathyam, Escape, S2, Palazzo and The Cinemas brands.
On social media
The announcement dominated the social media space with many expressing their disappointment over the deal and seeking to know whether they would continue to get the famous popcorn and cold coffee.
“You sell it to who you want, I will always call it Sathyam,” actor Siddharth tweeted. “PVR is a multiplex. SPI cinema is an emotion,” another Twitter user wrote.
“Both Kiran and Swaroop have done a tremendous job in building some of the best cinemas in the country and I look forward to their continued partnership with PVR as we take the business to the next level. This transaction is a significant step in helping us achieve our vision of having 1000 screens by 2020,” said Ajay Bijli, CMD, PVR Ltd.
Reddy said SPI Cinemas is excited to now partner with the largest Indian multiplex chain PVR as this combines two proven business models and will create significant value for moviegoers as well as all the stakeholders.
