Justice Sues to Block ScreenVision, CineMedia Merger
The Justice Department is suing to block the $375 million merger of National CineMedia and Screenvision, saying it would combine the only two "significant" cinema ad networks in the U.S., reducing competition and likely raising prices.
The suit was filed in U.S. District Court for the Southern District of New York.
The companies, which are owned by the three largest movie chains, Regal, AMC and Cinemark produce the pre-show programs that promote new TV shows, movies and other fare. The ad networks and the theaters share the revenues.
The companies signaled they still hoped the deal could be done, and that they could make the case for it.
Broadcasting & Cable Newsletter
The smarter way to stay on top of broadcasting and cable industry. Sign up below
Contributing editor John Eggerton has been an editor and/or writer on media regulation, legislation and policy for over four decades, including covering the FCC, FTC, Congress, the major media trade associations, and the federal courts. In addition to Multichannel News and Broadcasting + Cable, his work has appeared in Radio World, TV Technology, TV Fax, This Week in Consumer Electronics, Variety and the Encyclopedia Britannica.