Cinema United urges Paramount and Warner Bros. Discovery to negotiate settlement

Cinema United, the trade organization representing movie theaters, announced a change in its stance toward the proposed Paramount-Warner Bros. Discovery merger. In a letter dated Tuesday, the group’s president and CEO Michael O’Leary and board chair Mike Bowers asked Paramount Skydance chief David Ellison and California Attorney General Rob Bonta to meet promptly to explore ways to resolve the lawsuit that the attorneys general filed to block the deal.

The letter cited recent box-office successes and warned that the industry’s momentum could falter without certainty about the merger’s outcome. > "Today, our industry has the wind at its back. Studio partners are creating and distributing extraordinary films. Audiences across generations are responding with enthusiasm," the Cinema United leaders wrote. They added that continued growth requires cooperation between studios and exhibitors.

O’Leary and Bowers expressed concern that ongoing legal uncertainty could disrupt the entertainment business. > "For many in our industry, the current environment is marked by disruption and uncertainty. That is why we believe it is incumbent upon both of you to meet in good faith to discuss a resolution that would provide robust protections and serve the entire industry," the letter said.

The organization outlined four safeguards it seeks: a commitment to maintain or expand theatrical releases with strong marketing and exclusivity periods; a guarantee that the merger will not raise rental terms; protections allowing theaters of all sizes to exhibit films without excessive requirements; and continued reasonable access to film catalogs.

Cinema United’s outreach mirrors recent letters from Hollywood unions, including IATSE and the Directors Guild of America, which also urged a quicker resolution to avoid prolonged uncertainty that could harm workers and the broader industry.