Theater Owner Warns Merger Delay Could Harm Film Supply

Cory Jacobson, who founded Phoenix Theatres in 2000 and has worked nearly five decades in movie exhibition, said regulators should weigh the risks of both approving and blocking the proposed Paramount-Skydance and Warner Bros. Discovery merger. He noted that theaters depend on a steady flow of films and that uncertainty about studio ownership can delay production, leaving future release calendars empty.

Jacobson explained that while home-entertainment formats have expanded the overall value of film content, a meaningful theatrical window remains essential for movies to become events and retain value for later streaming. He warned that if the merger is halted, Warner Bros. would still face strategic questions, potentially postponing decisions on film development and financing, which could translate into fewer major releases in coming years.

He pointed to Paramount’s pledge under CEO David Ellison to deliver at least 30 theatrical releases annually for three years, suggesting that extending this commitment to five years would give exhibitors greater confidence during the integration period. Jacobson also highlighted the financial impact of the “ticking fee” that Paramount must pay if the deal is delayed, estimating it could reach about $1.3 billion, funds that he believes would be better spent on film production.

"If preventing this transaction produces prolonged uncertainty, delays investment and ultimately results in fewer major films entering production, preserving another independent studio on an organizational chart will provide little comfort to theatre owners," Jacobson said.

He concluded that the industry’s health relies on both studios and exhibitors investing in new movies, and that a merger delay could pose a greater risk to that ecosystem than the consolidation itself.