Canal+ Enters Exclusive Talks to Buy Minority Stake in French Film Studio UGC That Operates Leading Cinema Chain

Canal+ group has entered into exclusive negotiations to buy 34-percent stake in UGC, the Paris-headquartered film studio that was founded in 1971 and operates one of France’s leading cinema chains.

Following the acquisition of the minority stake, Canal+ would have the option to take full control of UGC starting in 2028.

UGC, which also comprises a vast library and a talent pool, boasts a cinema chain of 55 multiplexes, including 48 in France and 7 venues in Belgium. In France only, UGC is believed to have 521 screens. One of their theaters in Paris, called UGC Ciné Cité Les Halles, is considered the most visited cinema in the world, according to Canal+.

UGC’s library of films include mostly mainstream comedies, such as “Serial Bad Weddings” (pictured), as well as movies such as Jean-Pierre Jeunet’s “Amelie,” and “HPI,” the hit series that’s been remade into “High Potential” by ABC.

Canal+ Group, which has more than 27 million subscribers across 52 countries, has direct theatrical operations in key territories, including France, Germany, the U.K. and Australia/New Zealand, among others. The company produces and distributes around 200 films globally and is behind global hit franchises such as “Paddington” and “Bridget Jones.”

In a statement, Canal+’s CEO Maxime Saada said “the growth of Studiocanal, led by Anna Marsh, is a priority for the Canal+ group, and combining our business with UGC would enable us to accelerate this development.”

“This transaction demonstrates the group’s commitment to Cinema and theatrical exhibition, which play a vital role in showcasing and enhancing the value of films,” Saada, pointing out that “Canal+ has, since its creation in 1984, been the number one partner and supporter of French and European cinema. UGC has built a remarkable network of theatres, an exceptional library of content and outstanding IP. ”

Elsewhere in Europe, Canal+ also has stakes in MultiChoice, the leading pay TV group in English and Portuguese-speaking Africa; Viaplay, Scandinavia’s local streamer; and Viu, a large VOD platform in Southern-Asia. The banner recently received anti-trust approval to finalize its takeover of MultiChoice.

The signing of the deal with UGC will be subject, if applicable, to “information and consultation of employees’ representative bodies,” said Canal+ in its release.

Several other companies, including the holding of Mediawan co-founder Xavier Niel, are believed to have been in the running to buy UGC.