Discovery merger, meaning all three of the country’s major movie theater chains are backing the $111 billion deal. Discovery merger as prolonged uncertainty runs the risk of diverting time and resources away from achieving these priorities.” Like AMC and Regal, Cinemark has pointed to Paramount Skydance CEO David Ellison’s promise to increase the number of new releases, with a pledge to debut at least 30 films a year and keep them in theaters for a minimum of 45 days. These are conditions and formal assurances that align with our long-held views, which we at Cinemark support.” Meanwhile Cinema United, the exhibition industry’s main lobbying group, remains opposed to any sale of Warner Bros.
The group’s president Michael O’Leary has warned a takeover of the legacy Hollywood studio will lead to fewer films and potential theater closures. Cinemark acknowledged the awkward divide between the trade org and its three biggest members, writing that the chain is “highly encouraged by constructive dialogue taking place between Paramount Skydance and Cinema United.” “We respect and appreciate Cinema United’s advocacy on behalf of all theatrical exhibition and view these conversations as meaningful progress toward achieving outcomes that support our industry’s long-term health and success.” Cinemark’s statement follows the support from AMC Theatres and Regal Cinemas. AMC’s CEO Adam Aron has been backing the merger since CinemaCon in April, arguing the combined company would strengthen the theatrical business.
Regal’s chief Eduardo Acuna recently added his voice to the chorus, warning that delaying the merger might create “more uncertainty and distraction that could be damaging to our industry as we build on our current success.” Acuna is referring to the fact that this summer’s box office is already the biggest since “the before times,” with revenues surpassing $4 billion for only the second time since COVID. There’s a chance that popcorn season even eclipses the all-time summer record set in 23 with $4.755 billion (not adjusted for inflation), according to Rentrak. Meanwhile yearly domestic revenues could hit $10 billion for the first time since 2019.
Cinema operators have been concerned that any sale of Warner Bros. would disrupt the industry’s hard-fought progress in the wake of the pandemic and the 2023 strikes. When Disney acquired 20th Century Fox in 2019 and left the business with one fewer major studio, the joint company’s output shrank dramatically. With the merger on hold (and facing a 2027 trial), Ellison is threatening to pull Paramount out of California as soon as October if the states refuse to negotiate.
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