Nordic giant forming
Norway's Schibsted, Sweden's Sandrews linking
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If it goes through, the deal will create the largest vertically integrated film and video acquisition, distribution and exhibition company in the Nordic territories, according to sources inside the industry.
Longtime teaming
The two companies already work together in buying rights for the Nordic territories under the 7-year-old acquisition company Sandrew Metronome. Last year Schibsted and telco TeleDenmark bought out Metronome in Denmark; then Sandrews and Schibsted teamed to create an exhibition alliance called San-drews Metronome Theatres. That alliance is already building a 10-screen plex in downtown Helsinki and an 11-screener in Copenhagen.
During the buyout of Metronome, TeleDenmark acquired Metronome's substantial video interests and its 125-title film catalog. Sources close to the negotiations say TeleDenmark has now agreed to sell Schibsted its video and film catalog stakes.
Sandrews Metronome Theatres also last month moved to gain free title to its Danish exhibition holdings by buying out a 50% interest in its 12 screens still owned by Warner, a holdover from a deal Warner had earlier with Metronome. The move gives Sandrews Metronome Theaters 100% ownership of its Danish hardtops.
New company planned
If all goes as planned, Sandrews and Schibsted will form a holding company for their merged interests that will likely once again go under the brand name Sandrews Metronome, and be owned 50% by Sandrews and 50% by Schibsted. It will be headed by Sandrews CEO and president Klas Olofsson.
Jan Erik Knarbakk, executive VP of Schibsted, told Daily Variety the impending deal would create "the most complete group in its field in Scandinavia."
Knarbakk said Svensk Filmindustri "is big in exhibition and distribution but it has no video interests in Denmark. Egmont is massive in Denmark, but has no cinemas in Sweden and Finland."
Said Olofsson, "We are now looking at Scandinavian countries as one market. Sandrews was quite successful in its cinema expansion in Sweden during the '90s and we hope now to repeat that performance in other parts of the Nordic market -- with the help of a strong partner."
Both companies have substantial production and other media holdings which are not part of the impending deal. Schibsted is a publicly quoted company; Sandrews is privately held.
