On Monday, we woke up to bad news.
The PVR group would soon acquire the celebrated Sathyam Cinemas, a Chennai landmark.
Chennai was apprehensive, because it loves Sathyam.
The theatre that has the newest technology. The best audio. Great popcorn.
Where the celebrities go to watch their movies on the first day. Where prestigious audio launches are held. Where stones are thrown when people want to send a message to other people. Even when the other people own a cellphone company, and it might have been easier to send an SMS.
No siree. Because when you hurt Sathyam, Chennai cares.
Will PVR care for Sathyam? Chennai was not so sure, because Chennai has been suffering lately.
Last year, Landmark, the bookstore shutdown, robbing every Chennaiite for warm memories of figuring out where the books are in a sea of teddy bears and chocolates and pens and hey, that’s the teddy bear section again! (Answer: It was between the greeting cards and the pens, but if you see the chocolates, you’ve gone too far.)
Chennai was already burnt, and now this PVR is trying to put a spear into the burn.
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PVR, India’s largest cinema exhibitor, has been on a shopping spree. They recently acquired a “controlling stake in Cinemax India for Rs. 395 crore,” and DLF’s DT cinemas. During the DT acquisition, Ajay Bijli, chairman of the PVR group said, “We foresee a tremendous value add in the cinema space and other retail entertainment formats, which will help us broad-base the entertainment options that are currently being offered to our Indian customers. This move is both imperative and rudimentary to help transform PVR into an integrated retail entertainment company over the next few years.”
According to the Economic Times, “…the [Sathyam] deal may close for a rather steep valuation of approximately Rs 750-1,000 crore for just 40 odd screens.” The acquisition would be the biggest ever carried out by the PVR Group. But Kiran Reddy, CEO of SPI Group – the conglomerate that owns Sathyam Cinemas – told ET that the sale was just one of the options the company had to raise capital. “We are exploring several options to raise capital and are also in talks with several PE players. We have not taken any final call on the future course of action. A sale is an option but at this moment I have nothing to comment about on any valuations or potential discussions as nothing has firmed up yet.”
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Chennai though, had no time for nuanced discussions of leveraged buyouts and raising capital from private equity players. It was worried.
“What if Sathyam stops operating like Sathyam?”
“What if Sathyam stops being awesome?”
“What if the popcorn stops being good?”
Buy Sathyam. But if you touch the popcorn, you are finished.
— Vasu (@sriramvasu) January 12, 2015
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“Cinema means Sathyam,” said singer Sunitha Sarathy in a matter-of-fact tone, when we reached her for comment. She has fond memories of the place. About eight years ago, Sunitha performed on stage at Sathyam Cinemas. “In front of Kamal Haasan!” She added, “I wish there won’t be a drastic change in the ambience, and hospitality. I hope they don’t take away its essence. I always wait so I can watch my movies at Sathyam. My favourite.”
Director CS Amudhan took his wife to Sathyam Cinemas to watch their first movie together in Chennai. “It was Madagascar,” Amudhan laughed. He also had his first cold coffee at Sathyam. Words failed him as he tried to articulate its greatness. “Who would not have nice memories about the place?” he wondered.
Amudhan pointed out that the quality of sound and visuals at Sathyam Cinemas is impressive. “I’ve hated watching films in other theatres. It’s hard to patronise other cinemas, when you frequent Sathyam,” he said. When Amudhan’s first film – Thamizh Padam – was playing at Sathyam Cinemas, he almost camped at the theatre for over 15 days. Also, as a consumer, Amudhan said, “No other theatre offers the personal touch that Sathyam does.”
“Sathyam is a yo-yo theatre ba!” said RJ Balaji in his inimitable style.
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“Posh theatre! When I was a college student, I would wear nice clothes and shoes to go to Sathyam. Pub poraa maadhiri,” recalled Balaji. He would also befriend students of New College to borrow their ID cards. “Andha kaalathula adhu oru gethu. Sathyam would sell 10 rupees tickets only to New College students. Such beautiful days.”
Balaji’s Vadacurry released in Sathyam last year, and he watched the film with his family on the eve of his birthday. “My friends and family, around 80-85 people, were seated in the balcony. Just before the interval, a video tribute for my birthday was screened. My wife had arranged it for me. Really unforgettable! I don’t think Sathyam usually permits screening of personal videos.”
RJ Balaji finished with the hope that the Sathyam name stays. “Perellaam maathinaalum, namakku adhu Sathyam thaanga!”
Chinmayi was out running errands, but her mother Padmhasini told us, “Chinmayi told me about the acquisition. She is too too too sad. This is bad!”
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Meanwhile, the Chennai Twitterati have been busy reacting to the (not yet) sale.
Mixed feelings about PVR buying Sathyam cinemas. Just hope they don’t re-brand or do anything to their ID restaurant!
— Chandra R. Srikanth (@chandra86) January 12, 2015
@nivie Jokes apart, I sure hope this isn’t true (PVR to acquire Sathyam). B’coz I’m apprehensive they’ll wreck it.
— Ähmèd Hüssáin احمد (@ahmedhussain) January 12, 2015
Varun Manian tried to be rational, but people would have none of that.
@varunmanian Selling ur heritage for money? Sathyam cinemas is not a property.
— Raavana Pandian (@ravanapandian) January 12, 2015
Some threatened to leave the country. Not just leave, but officially leave. It is that bad.
If PVR does acquire Sathyam, then best is to officially become NRI. — Achu (@brahahamin) January 12, 2015
But this guy summed it all up, while managing to get a dirty word into our copy.
People are eulogizing Sathyam like PVR is going to replace it with a crater. I feel the same way myself. — Prashanth (@wothadei) January 12, 2015
Featured image courtesy: www.tripadvisor.in