Company Town

Exhibition: Time Warner Inc. and Paramount Communications Inc. are willing to sell their jointly owned Cineamerica theaters--but at a big price. With operating cash flow of nearly $30 million, they want more than $250 million for the 350-screen circuit, sources said. By asking for nine or 10 times its cash flow, Cineamerica is demanding a higher multiple than the price paid for the giant United Artists circuit two years ago. Warner has been willing to sell for some time, but Paramount agreed only after control of the company passed to Viacom Inc. Viacom Chairman Sumner Redstone already controls the closely held National Amusements movie theater circuit in the Northeast, but he is either unwilling to pay Warner’s price or reluctant to risk the appearance of a conflict of interest. According to industry sources, the possible bidders include the Norman Lear-controlled Act III theaters; Cineplex Odeon, and an investment group led by the former owners of Cinema World, a Pittsburgh-based chain sold to Carmike Cinemas.