Imax Seeks to Buy Out China Subsidiary

The video discusses the motivation behind separating China operations, highlighting the historical context of arbitrage opportunities in stock valuations. It explains IMAX's strategy to leverage high valuations in China to fund growth, although it has underperformed recently. Despite paying a premium, the current deal is favorable compared to historical levels. IMAX anticipates immediate earnings benefits and cost savings amid a fluctuating movie industry in both China and the U.S.

What does the term 'accretive to earnings' imply in the context of IMAX's strategy?

In what ways can IMAX save money during a time of flux in the movie business?