Cinemark has endorsed the Paramount and Warner Bros. Discovery merger, which means all three of the country’s major movie theater chains are backing the $111 billion deal.
“The enduring success of our industry requires a healthy theatrical ecosystem supported by financially sound studios and exhibitors that can effectively create, distribute and exhibit high-quality films to consumers around the world,” Cinemark said in a lengthy statement. “We join those who have recently called for an expedited resolution of the proposed Paramount Skydance and Warner Bros. Discovery merger as prolonged uncertainty runs the risk of diverting time and resources away from achieving these priorities.”
Notably, Cinemark attributed the letter to a spokesperson rather than its CEO Sean Gamble. Like AMC and Regal, Cinemark has come around to favoring the merger because Paramount Skydance CEO David Ellison has promised 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.
“We have consistently stated we would look favorably upon media consolidation that increases the quality and output of films released into theaters with sufficient marketing campaigns and theatrical windows, and that is backed by firm commitments to ensure follow-through,” Cinemark’s statement said. “[Paramount is] now offering to put those pledges into written commitments and consent decrees. 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. Moreover, cinema operators have been concerned a Warner Bros. sale could 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, their combined output shrank dramatically.
Minutes after Cinemark’s endorsement, Cinema United issued a statement saying, “Despite our concerns about industry consolidation, Cinema United, on behalf of our executive board and the entire exhibition community, today called for the AGs and Paramount to meet and discuss settlement. Since the outset, we have been open to steps that will protect the exhibition industry. This is the next step in that process to ensure a thriving industry for generations to come.”
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 said.
Cinemark’s statement follows endorsements 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.
The support from major exhibitors comes as Paramount is battling an antitrust lawsuit from a 12-state coalition to block the takeover of Warner Bros. Discovery. 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.
