Exhibitors Herald (Jan-Mar 1920)

EXHIBITORS HERALD Loew, Inc., Purchases Metro, Effecting Strong Combination Great Circuit of Theatres and Producing-Distributing Organization Join for Mutual Strength — Each Will Maintain Separate Individuality In a transaction involving several million dollars, Marcus Loew, Inc., and Metro Pictures Corporation have effected a business affiliation. Through the purchase by Loew, Inc., of Metro stock, the Loew circuit of theatres and the Metro company start the new year with a business combination that was conceived and brought to fulfillment for their mutual expansion. Marcus Loew, head of the Loew enterprises, and Richard A. Rowland, president of Metro, in announcing the deal, declare it to have been theoutcome of negotiations that have extended over a period of several months, during which every detail has been most carefully considered and worked out. It unites the business interests of one of the largest exhibiting chains in the United States, which is increasing every day in strength and scope, with those of one of the big producing and distributing organizations. , Final Papers Have Been Signed The final papers in the arrangement have been signed by the chief executives of the two organizations. Thev let it be known that the business merger will mean the closest sort of co-operation between Loew and Metro, with the Loew houses on the one hand furnishing a certain and permanent market for the Metro product, and Metro on the other providing a permanent source of motion picture material. "This arrangement with Loew, Inc.," says an explanatory statement by Mr. Rowland, "cements a friendship of long standing between Metro and the Loew enterprises. For several years the closest relations have existed between the two companies. The present union of interests is the logical development of the constantly growing good will on both sides. It means that we will each be of greater strength to the other. Assures Adequate Representation. "The Loew Theatres, comprising an imposing circuit, will assure continuous and adequate representation for the Screen Classics, Inc., special productions of the fewer and better' sort originated by Metro and already sweeping the country. It will also assure the highest quality of notion picture entertainment for the -oew Theatres, entertainment of a qualty, we think, that will make the Loew Theatres even more powerful factors in he communities they serve than they how are. \ "The arrangement will in no sense inerfere with our established policy tovards the independent exhibitors. The ndependent showman will receive the ame service and be accorded the same ealous effort on Metro's part to give im quality productions as has characterzed Metro's past dealings with the ownrs of these houses. "The independent theatre man. for istance, will always be able to obtain letro-pictures in fair competition in the pen market, as heretofore, and benefit y their pulling power. This association ith Loew, Inc., will also enable Metro 3 go the limit in its constant endeavor to improve the artistic quality of its productions, with the guaranty that there will be a dependable market for them not only in the Loew houses, but RICHARD A. ROWLAND President of Metro Pictures Corporation, which has been merged with Marcus Loew, Inc. in the great many other high-class theatres where they have in the past proved so acceptable as entertainment and so sound as commercial assets when measured by the returns at the box office. Will Enlarge Open Market. "Furthermore, it will greatly enlarge the field for the independent, or 'freelance' director-producer. Metro will be in the market to buy independent productions for distribution by our large and highly specialized exchange system. Any man who has made a good picture ma} bring it to Metro." Announcement of the Loew-Metro transaction also makes it plain that each organization will retain its individual identity. There will be harmonious and helpful co-operation between the two, but Metro is to remain, of course, as primarily a producing company and the Loew, Inc., enterprises hold to their function as purveyors of motion picture and vaudeville entertainment. With regard to the measure of cooperation between the two organizations, it is announced that the executives of each will be in close touch, notwithstanding the arrangement providing for maintenance of separate identities. In addition, the Metro board of directors will be reorganized with members of the Loew, Inc., directorate represented on it. This is expected to establish the most harmonious business relations, » as the problems of one organization will necessarily partake of some of the problems of the other. Means Further Expansion. "We have been reminding the trade from time to time that we intended to expand and expand and then expand The Greatest NEWS paper of them all EXHIBITORS HERALD 47