Cinema United urges Paramount, California to settle Warner Bros deal

LOS ANGELES: Hollywood’s merger battle is heading for a possible intermission, with US theatre owners urging Paramount Skydance and California to settle their fight over the proposed $110 billion acquisition of Warner Bros Discovery.

Cinema United, which represents around 30,000 US cinema screens, has called on California Attorney General Rob Bonta and Paramount CEO David Ellison to explore a settlement of the antitrust lawsuit seeking to block the deal, according to a Reuters report.

The trade group had previously opposed the merger, arguing that the combination could hurt the theatrical exhibition business. Its latest position follows Cinemark, the third-largest US cinema chain, joining AMC Theatres and Regal Cinemas in supporting the proposed transaction.

Cinema United has now asked for “tangible and enforceable guardrails” to protect theatre owners and moviegoers if the merger goes ahead.

Among its demands are a long-term commitment from Paramount to maintain or increase the number of films released widely in cinemas. The group also wants assurances that the merger will not result in higher fees for theatre owners showing Paramount and Warner Bros films.

Cinema United is additionally seeking continued access to the extensive film libraries owned by Paramount and Warner Bros, highlighting concerns over how a combined company could control content supplied to cinemas.

The call for a settlement comes as California and 11 other US states pursue legal action to block Paramount’s acquisition of Warner Bros Discovery. The states have argued that the merger would create a powerful media company capable of increasing prices for films and television content.

The lawsuit also alleges that the deal could hurt cinemas and television distributors while weakening competition for workers and putting pressure on wages.

Bonta has rejected the suggestion that the theatre industry’s support changes the state’s position. He said the proposed merger remains unlawful and warned that it could result in job losses, lower wages and higher prices for consumers.

Cinema United’s change in approach reflects the increasingly divided response from the theatre industry. While the organisation initially opposed the deal, the country’s three largest cinema chains now support the merger, putting pressure on regulators to consider the industry’s concerns alongside the broader antitrust case.

For Paramount, a settlement with California could offer a path through a major regulatory hurdle. For theatre owners, the focus is now on securing commitments that ensure the merger does not come at the expense of cinema releases, exhibition costs or access to films.