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I didn't research the building that allows me to buy/sell theaters, and didn't think that I can be in this situation.
As Matsk said, it makes more sense to be able to rent them for a higher price, otherwise if you want to give a feeling of "commercial war", you need to force the player to research the needed building early on, because it's so frustrating right now.
I don't agree we should be forced to build the theater management building. We should face the consequences of our decisions and not have the game hold our hand. Next time I play through I will remember this.
I think the mechanic is just fine the way it is.
Should be better again in the 1940s.