During Viacom’s Q3 earnings call yesterday, Sumner Redstone indicated he had figured out how he would meet his National Amusements loan obligations, by selling some of his “valuable real estate,” aka movie theatres. Man, even Sumner Redstone is bearish about seeing movies in the theatre.
LA Times: Sumner Redstone hinted Monday that he might sell his family’s movie theatres to fix his pressing debt problems.
In a conference call with analysts, the 85-year old media mogul said his privately held National Amusements Inc., which operates 1,500 theatres, owns “valuable real estate holdings throughout the country.” The company must come up with an $800-million debt payment next month as it negotiates with lenders to restructure $1.6 billion in loans…
Redstone called Viacom “the love of my life,” the theatre circuit not so much. Redstone has said he is no longer bullish on the future of the cinema business.
No offence, CBS. We’re sure he loves you too.
Indeed, on Monday he sounded almost like a real estate agent with a hot listing, noting that National Amusements theatres were built “for the most part on land which we own, something I always insisted on.”
The NY Post’s Peter Lauria also remarked that Redstone’s comments indicate that he could use the land as collateral in his negotiations.
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