LONDON — U.K. cinema chains Cineworld and Odeon have formed a joint venture to buy part of ITV’s stake in Carlton Screen Advertising, the cinema advertising subsidiary, in a deal worth £500,000 ($975,000).
The new firm, in which Cineworld and Odeon each hold a 50% stake, is called Digital Cinema Media.
Cineworld CEO Steve Wiener said: “I am delighted we have reached a mutually acceptable conclusion to negotiations with Carlton Screen Advertising and ITV.
“DCM plans to develop a more flexible, targeted and timely service for advertisers and local businesses, who hitherto have not been able to make full use of advertising across the cinema sector.
“I believe this will not only be attractive to us but also for other cinema exhibitors that wish to take advantage of DCM’s advanced service offering.”
ITV, which is battling to revive itself as a broadcaster, is disposing of non-core assets.
On Wednesday it announced the sale of its stake in the broadband business of Premiere League English soccer club Liverpool, which will raise $39 million.
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