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Anschutz in Hushed Buy-out Talks with Edwards Theater Chain

DENVER-Billionaire Philip Anschutz is making a play that could catapult him into the largest market shareholder in the movie screen industry. GlobeSt.com has learned he is in secret talks to take over the nation's largest and oldest movie theater chain.

By John Rebchook | Updated on January 31, 2001

DENVER-Denver billionaire Philip Anschutz is in secret negotiations to buy the bankrupt Edwards Theatres Circuit Inc., one of the country’s oldest and largest movie theater chains, sources tells GlobeSt.com. Anschutz, with a fortune estimated at $18 billion, already has taken control of Denver-based United Artists Theatre Circuit Inc. and is the largest owner of debt of Regal Cinemas, the No. 1 theater chain in the nation. If Anschutz is successful in acquiring the 71-year-old Edwards, based in Newport Beach, CA, he will add 65 theaters and 712 screens to his growing portfolio.

United Artists currently is emerging from bankruptcy and is the nation’s sixth-largest movie theater company. The privately held Edwards theater chain, which filed bankruptcy last year, is ranked eleventh nationwide. Regal, based in Knoxville, TN, is not in bankruptcy, although if Anschutz is successful in converting his $345 million in debt into equity–as he has been with United Artists–one strategy would be to take the company into bankruptcy in order to shed some of its older and expensive leases. If he takes control of all three chains, he will own about 6,400 of the 36,000 screens in the nation, giving him an 18% market share, far more than any chain.

Ann Julsen, a spokeswoman for Edwards, would only confirm that the chain currently is only negotiating with one potential buyer. “The company has been looking at a few different investors, potential investors,” Julsen says. “We have narrowed the field down to one. But we have no definitive agreement with anyone.” She says if the current investor is successful, the Edwards family will “remain significant shareholders” in the restructured company.

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