Movie Theater Owners Divided Over Paramount-Warner Bros Merger
Variety • • entertainment
Key Points:
- Paramount’s proposed $111 billion takeover of Warner Bros. Discovery has created a rift among movie theater owners, with Cinema United opposing the merger while its two largest members, AMC Theatres and Regal Cinemas, support it.
- Cinema United president Michael O’Leary fears the merger will reduce film output and lead to theater closures, but AMC’s Adam Aron and Regal’s Eduardo Acuna argue the deal will strengthen the theatrical business and have publicly backed it.
- The split has caused internal conflict within Cinema United, raising concerns among smaller exhibitors about their bargaining power and the future of independent theaters amid potential industry consolidation.
- Paramount Skydance CEO David Ellison has pledged at least 30 film releases annually from the combined studio, but skeptics point to the company’s heavy debt and past mergers like Disney-Fox that resulted in fewer releases.
- AMC and Regal may be positioning themselves favorably with the merged entity, especially after reportedly receiving a three-year agreement guaranteeing exclusive 45-day theatrical windows, a move that worries smaller exhibitors reliant on diverse film offerings.
