Apparently the arts cinema, or the arts cinema's ethos (?) or something will continue in the shape of the cinema formerly known as the ABC cinema. This has been closed for the last couple of years, but promises to reopen when it has been refurbished.
Given that both the old ABC and the Arts Cinema were (as far as I know) running at a loss, I'm not sure this is a particularly cunning plan.
The whole deal is explained rather more lucidly by the Arts Cinema people themselves here. Personally I am of the opinion that anything that could inspire Cambridge Students to write A Good Movie is Groovy (which it clearly is) in spray paint on the pavements of the city cannot be entirely bad.
Anyway, if you want to add to the rumour and speculation, or if you are a philanthropic type with 1.5 million to flitter away and want to ingratiate yourself with the Arts Roaches of Cambridge, get in touch
Disclaimer: all the above is wild speculation. I have no connection with the arts cinema and do not claim to represent them, although I do think that the arts cinema is neat.