Hollywood
US Justice Department probes Warner Bros sale impact on cinemas: Report
Theatre chains called in to discuss potential effect of Netflix or Paramount deals
NEW YORK: The US Justice Department has summoned some of the country’s largest cinema chains to private talks about the possible sale of Warner Bros Discovery, according to a Bloomberg report. Government antitrust lawyers are seeking information on how a sale could affect film releases and the wider movie-going public.
Bloomberg reports that, sources familiar with the meetings said officials are exploring whether a sale could shrink the number of films hitting theatres or shift the balance in the streaming versus cinema tug-of-war.
The review is focused on the potential impact of a sale to either Netflix or Paramount Skydance. While Netflix has a history of releasing only a limited number of films in select theatres for short runs, Paramount Skydance could face heavy debt if it succeeds, possibly limiting its film production.
The meetings come after Warner Bros recently rejected Paramount Skydance’s hostile $30-a-share bid, while giving the rival studio seven days to submit a best and final offer that would top the existing Netflix agreement. Paramount acknowledged the offer but called Warner Bros’ board actions unusual.
Warner Bros is moving forward with a vote on Netflix’s offer for its streaming and studio businesses on March 20. If approved, the merger would follow a spin-off of Warner Bros’ Discovery Global cable operations, including CNN, TLC, Food Network and HGTV, into a separate publicly traded company.
For cinema-goers, the question remains whether Hollywood’s boardroom battles will shrink the number of films on the big screen or just shuffle the popcorn seats.
