Imax down 4% after Netflix agrees to buy studio, streaming unit of Warner Bros.

Shares of Imax (IMAX) are down $1.48, or 4%, to $34.76 after Netflix (NFLX) announced a deal this morning to buy the film and television studios, HBO, and HBO Max streaming assets from Warner Bros. Discovery (WBD). During the investor day Imax hosted yesterday, the company had stated: “So, it’s been rumored in the press that there are three potential buyers for Warner Brothers soon. As you know, we have great relationships with Warner Brothers. But fortunately, we also have terrific relationships with all the potential buyers. And I think we have some insights into how each of them might run the business differently. And, you know, I think we’re not going to share those until it’s clear that there’s a winner. But I think the most important insight from our point of view is that whoever wins, you know, we believe IMAX will win. And, you know, we’ve been through a lot the last seven years, whether it was a global pandemic or whether it was consolidation happening in the industry or whether it was acquisitions like when Disney bought Fox. And every time there’s been alarm bells that have gone off, you know, what does this mean for IMAX in the future? And every one of those, we’ve actually built our business better.”