Cablevision Systems Corp., the New York-area cable operator, agreed to sell most of the Clearview theater chain to closely held Bow Tie Cinemas, making Bow Tie the largest exhibitor in the metropolitan New York area.
Bow Tie, owner of 22 U.S. theaters with 177 screens, will become the eighth-largest chain with the purchase, the companies said Monday in a statement. Terms weren't disclosed.
Bow Tie will make "substantial" investments in the Clearview sites, including digital projectors and 3-D gear, so the cinemas can show Hollywood's biggest releases, according to the statement.
Cablevision, based in Bethpage, said in May it was considering its options for Clearview. Cablevision acquired Clearview, which has eight Long Island locations, for about $158 million in December 1998, according to a regulatory filing. Cablevision owns Newsday.
Bow Tie is based in Ridgefield, Conn., and is still run by the family that founded the company more than 100 years ago, according to the statement.
The agreement calls for Bow Tie to manage the Ziegfeld Theatre in New York, although Cablevision will retain ownership, the companies said. The company plans to make New York's Chelsea Cinemas its Manhattan flagship.
Shares of Cablevision rose 1.28 percent, or 19 cents, to close at $14.99 in New York. The stock is little changed this year.
With Keiko Morris