As part of its push to get theaters to support their pending acquisition of Warner Bros. Discovery, Paramount Skydance has made offers to put CEO David Ellison’s pledge of 30 theatrical releases a year with a 90-day theatrical window in writing.
Three individuals with knowledge of the talks tell TheWrap that the company has told theater chains that it is willing to enter a bilateral agreement in which Paramount has pledged to release at least 30 films a year for three years after the merger with Warner Bros. is completed, with a minimum theatrical window of 45 days before release on premium video on-demand and 90 days before release on streaming.
Insiders say the offer has been key to earning the support of the two largest movie theater chains in the United States, AMC Theatres and Regal Cinemas, as well as British theater chain Vue Cinemas, all of whom have released statements in favor of the merger.
In his statement released on Thursday, Regal Cinemas CEO Eduardo Acuna called on the movie theater industry at large, as well as California Attorney General Rob Bonta, to come to the negotiating table and iron out a deal. Exhibitors have only just begun to see a turnaround after years of pandemic and industry strike-induced box office slumps thanks to a slew of recent hits including “Michael,” “Toy Story 5,” “Obsession,” and most recently, the duo of “The Odyssey” and “Spider-Man: Brand New Day.”
“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,” he wrote.
The binding deal offers have come as part of a larger push by Paramount Skydance to gather support from top entertainment executives for the merger and put pressure on Bonta and the 11 other state attorneys general who have sued to block the Paramount-WBD deal to reach a settlement ahead of a trial scheduled to take place in March 2027.
This past week, the United Kingdom’s antitrust division approved the merger despite signals from Culture Minister Lisa Nandy that she was considering intervening. This leaves the Bonta lawsuit as the last major hurdle before the deal would close.
While Paramount has gotten three theater chains on its side, executives from smaller theater chains have told TheWrap over the weekend anonymously that they still are deeply skeptical of Paramount and Ellison’s promises that the merger would improve the entertainment landscape, citing the dramatic decrease in theatrical output by the former 20th Century Fox since becoming 20th Century Studios following Disney’s acquisition in 2019.
Other concerns such as box office revenue splits and “clean screen” terms requiring exclusive play of a certain film for a specific amount of time, which Bonta’s lawsuit argues could become more unfavorable towards theaters in a more concentrated market, were also listed by these executives as reasons why they still oppose the merger despite the studio’s offers.
Trade organization Cinema United, which represents a wide range of theater chains, has come out in firm opposition to any acquisition of Warner Bros. Discovery and has expressed support for the Bonta lawsuit, but has also kept the door open for future negotiations with Paramount Skydance. An insider at the organization has told TheWrap that Cinema United sent a letter to Paramount Skydance in early July outlining its outstanding concerns regarding the merger but has not been in contact with the studio since.
Regal declined to comment beyond Acuna’s statement. TheWrap has reached out to Paramount for comment. The agreement offers were first reported by Bloomberg.
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