Imax's CEO Talks About The Company's Biggest Deal In 50 Years

IMAX Corporation (USA) (NYSE: IMAX) announced on Tuesday it struck a new deal with China-based Wanda Cinema to add 150 Imax theaters across China, 110 of which will be installed within five years.

Imax's CEO Richard Gelfond discussed the deal as he made an appearance on CNBC's "Squawk On The Street."

Gelfond pointed out that the deal struck with Wanda Cinema is actually the biggest deal Imax has made in the past 50 years. The executive added that an average Imax theater collects $1.1 million in box office sales, so the addition of 150 screens will generate an incremental $1.8 billion over the 12-year duration of the agreement.

Related Link: Wedbush Previews Imax's Q2 Results

He noted that the deal is also a positive for the entire Hollywood industry, which will inevitably benefit from Imax's greater exposure in China.

Gelfond went on to point out that the United States as a whole boasts around 40,000 movie screens, but China is expected to have more screens by 2017 or 2018. Over the longer term, China will have double the total amount of movie screens as the United States.

Switching topics slightly, Gelfond pointed out that Imax's box office sales year-to-date have already exceeded all of 2014's box office sales.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!