The proposed merger between Paramount and Warner Bros. Discovery has become one of the most hotly debated business deals in recent Hollywood history. Actors and unions, many of whom were strangely silent when Disney acquired 21st Century Fox, have spoken out against it. Additionally, 12 Democratic state attorneys general are working to halt the merger in court.
Now, theater exhibitors are weighing in, and David Ellison appears to have gained some influential new allies.
Regal CEO Backs Paramount-Warner Bros. Merger
Regal Cinemas CEO Eduardo Acuna has endorsed Paramount Skydance’s proposed acquisition of WBD, arguing that the merger could strengthen the struggling theatrical industry.
Logos for Paramount Skydance and Warner Bros. – Paramount, WB
In a statement released Wednesday, Acuna pointed to commitments he received directly from Paramount Skydance CEO David Ellison. Those promises include producing at least 30 theatrical films annually and investing $30 billion per year in media content.
Ellison also reportedly pledged to preserve theatrical exclusivity for at least three years. Under the proposed arrangement, films would receive a 45-day window before becoming available through transactional video-on-demand and 90 days before arriving on subscription streaming services.
“This year has been an important one for our industry,” Acuna said. “Attendance is up, younger audiences are coming out in numbers we haven’t seen in years, and the upcoming release schedule looks just as strong. While there is real momentum, we need a thriving studio system to ensure that the industry has a platform from which to grow.”
Acuna said he believes Ellison is sincere about protecting theatrical exhibition. The Paramount executive has also offered to place the commitments in a legally enforceable consent decree with the state attorneys general challenging the transaction.
“These are tangible and important commitments that will benefit the industry and which can be measured,” Acuna said.
Major Theater Chains Rally Behind David Ellison
Regal joins AMC Theatres in supporting the acquisition.
In an op-ed published in Variety last week, AMC CEO Adam Aron said he believed Ellison’s promise to release 30 movies annually. He also predicted that the combined studio’s output would benefit theaters.
“It’s a move that is feared by some,” he wrote, “but in our strongly held view, this instead is a step forward that should be welcomed and celebrated.”
David Ellison talks to Bloomberg – YouTube, Bloomberg Podcasts
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Although Cinemark has yet to issue a formal statement, Deadline reports that CEO and President Sean Gamble has also expressed optimism about the deal.
“Anything that leads to sustained or increased levels of investment in the number and scale of releases theatrically, that continue to have a robust theatrical window and comprehensive marketing campaigns is viewed as a positive for the industry. I think we’re hearing all the right things.”
However, the endorsements place the country’s two largest theater chains at odds with Cinema United, the exhibition industry’s primary trade organization. Cinema United CEO Michael O’Leary has warned that further consolidation could result in fewer movies, higher costs, shorter theatrical windows, and fewer operating theaters.
Regal Warns Against Prolonged Court Battle
With the antitrust trial not scheduled to begin until March 2, 2027, Acuna warned that a prolonged legal battle could disrupt the theatrical industry just as attendance appears to be recovering.
Paramount Pictures Logo – YouTube, ClosingLogosHD
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“A long fight in court that extends into spring or summer doesn’t put more films in theaters, and is not beneficial to studios, filmmakers, the guests who go to the movies, or theater businesses like Regal and the people who work for them,” he said. “It just creates more uncertainty and distraction that could be damaging to our industry as we build on our current success.”
Acuna called on Paramount and the state attorneys general to negotiate an agreement formalizing Ellison’s promises instead of continuing toward trial.
“With these measures in place, we believe that Paramount can be an effective steward of these studios that mean an enormous amount to people who love movies,” he concluded.
Do you think the support of the Regal CEO will help the Paramount-WBD merger? Sound off and let us know!
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