Carlton forms cinema advertising joint venture in £62m deal

LONDON - Carlton Communications has formed a new cinema advertising joint venture with Thomson Multimedia, as the two spend £62m acquiring cinema advertising companies in France and Belgium.

The two, through their new 50:50 joint venture, have signed contracts to acquire the cinema advertising interests of UGC in France and the Belgian broadcaster RTBF. The acquisition will give Carlton and Thomson cinema advertising interests in France, Belgium, Italy, Spain and nine other European countries.

The deal secures relationships with key European cinema chains such as UGC, Kinepolis, Warner Village, AMC and Ster Century, as well as major domestic exhibitors in each country.

Gerry Murphy, chief executive of Carlton, said: "Cinema is increasingly international in scope for exhibitors and advertisers, as well as for distributors. This acquisition expands our capability to deliver screen advertising solutions to important markets in Europe."

The latest deal is an expansion of an existing agreement. The two already operate Screenvision, a cinema advertising joint venture in the US.

Eighteen months ago, Carlton sold its film and video processing company Technicolor to Thomson for £1.43bn. The agreement involved Carlton making a $15m (£10.4m) investment in TAK, an interactive TV joint venture between Thomson and Microsoft.

Lanny Raimondo, senior executive vice-president of digital media solutions for Thomson Multimedia, said: "This venture will serve cinema exhibitors and advertisers, both of which are critical to Thomson's success in its digital transition strategy. Screen advertising is a profitable and growing business, which will provide a solid foundation to build the next generation digital services in cinemas, in partnership with exhibitors and advertisers."

Thomson, which makes RCA televisions and digital set-top boxes, has been making a series of acquisitions to boost its digital media business. Last week, it bought Royal Philips Electronics' professional broadcasting unit.

Carlton Screen Advertising, the market leader in the UK, remains wholly owned by Carlton.

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