Theater Chains Split Over Paramount-Warner Bros. Merger

The proposed $111 billion merger of Paramount Global with Warner Bros. Discovery has divided the U.S. exhibition industry. Cinema United, the trade group representing independent theater owners, has publicly opposed the transaction, citing concerns that it could reduce the number of films available and lead to theater closures.

In contrast, the CEOs of the two largest chains, AMC Theatres’ Adam Aron and Regal Cinemas’ Eduardo Acuña, have voiced support for the deal. Aron has argued that the combined studio would strengthen the theatrical business, while Acuña warned that delaying the merger could create uncertainty for the industry.

Cinema United’s president, Michael O’Leary, said the organization’s “responsibility and commitment is to the entire exhibition community” and pledged to pursue “meaningful and enforceable guardrails” to protect theater owners. He also endorsed recent antitrust litigation aimed at slowing the merger.

The split has raised concerns among smaller exhibitors, who fear that a consolidated studio could limit film availability and bargaining power. Some independent operators noted that past studio consolidations, such as the 2019 Disney-Fox merger, resulted in fewer new releases for smaller screens.

Paramount-Skydance CEO David Ellison has promised the merged studio will release at least 30 films annually, a higher output than Disney or Universal. Critics point to the combined company’s roughly $80 billion debt load and plans to cut $6 billion in overlapping costs as potential risks.

Aron and Acuña have reportedly been offered a three-year contract guaranteeing a 45-day exclusive theatrical window for the merged studio’s releases, a term already pledged by Paramount. AMC and Regal declined to comment further on the matter.