What do the CEOs of AMC Theatres and Regal Cinemas have in common? Both have been enticed to back David Ellison’s $111 billion quest to merge Paramount and Warner Bros. Discovery.
Regal chief Eduardo Acuna was the latest to go public with his blessing on Wednesday. The endorsement from the leader of a major exhibitor is notable given that the lawsuit filed by 12 states against Paramount to halt the deal is being waged as an antitrust battle on the turf of the fragile theatrical marketplace. If the theater owners themselves aren’t worried about Paramount’s undue influence on the landscape, well, then why should the states? At least, that may be the logic of Team Ellison.
The states’ logic is quite different. In a lawsuit led by California attorney general Rob Bonta, their argument goes that the merged studios will have undue influence over the supply of product to movie theaters. “Movie theatres rely on competition between Paramount and Warner Bros,” stated the complaint filed July 13. “Through this competition, theatres incentivize creativity and quality, and they secure competitive prices and terms for themselves and for audiences.”
The states argue that a merged WarnerMount will control 30 percent of movies that have earned $100 million-plus at the box office and have been bowed in 3,000 theaters for wide release. The case against Paramount is also backed by Cinema United, the lobbying group that represents movie theater owners and chains, including Regal and AMC.
“The ramifications of further movie studio consolidation will be significant and lasting, not just in Hollywood, but on Main Streets across this nation where local movie theaters serve as cultural and financial cornerstones for communities of all sizes,” Cinema United’s top exec, Michael O’Leary, said when the states filed suit in July.
Paramount CEO Ellison has pledged to ramp up production of features and release a combined 30 movies a year theatrically with 45-day theatrical windows. Regal CEO Acuna made reference to these promises in his statement (in full below), noting, “I believe David is sincere in making these commitments.”
Regal, the Knoxville-based division of exhibitor Cineworld that emerged from bankruptcy in 2023, is the second-largest circuit in the U.S. behind AMC Theatres. Adam Aron, who has led AMC for the last decade, was a relatively early backer of the Paramount-Warner Bros., making comments supporting Ellison’s bid at CinemaCon early this year.
Sean Gamble, the CEO of Cinemark, the third largest chain stateside, hasn’t been as explicit as Aron or Acuna but appeared to express support for Paramount and Warners over a suitor that would be less theatrically-minded, like Netflix.
Paramount’s legal team has argued that the high-stakes court battle should take place in November of this year but a judge disagreed and set the trial for March 2027. That sets up a long waiting game, which may be why the battle in the court of public opinion is only heating up. In recent days superagent Ari Emanuel, Aron and Ellison himself have all penned op-eds explaining the Paramount side of the logic for a merger. On the opposing side, another star-studded letter led by Benedict Cumberbatch, Alan Cumming and Benedict Wong argued against the merits of the deal.
Regal CEO Acuna’s full statement is below:
This year has been an important one for our industry. 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.
This is why, after much consideration, we believe it’s time for Paramount Skydance’s acquisition of Warner Bros. Discovery to move forward. I’ve spoken directly with Skydance Paramount CEO David Ellison and his team about what a combined company would mean for exhibition, and he has made some specific commitments: at least 30 theatrical films a year, a protected theatrical window with 45 days for TVOD and 90 days for SVOD for a minimum of three years, and a $30 billion annual investment in media content. I believe David is sincere in making these commitments, and he has offered to execute a consent decree to the State AGs to that effect. These are tangible and important commitments that will benefit the industry and which can be measured.
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. It just creates more uncertainty and distraction that could be damaging to our industry as we build on our current success. It is time for all parties to sit down and work out how to formalize these commitments. 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.