Divisions are emerging within the community of exhibitors on the proper stance to take over Paramount’s proposed acquisition of Warner Bros. Last week, Regal CEO Eduardo Acuna announced publicly his support for the merger, focusing on the negative impacts a lengthy delay would have on the entertainment industry overall. Acuna’s statement follows last April’s high-profile endorsement of the merger by AMC CEO Adam Aron.
The support of the CEO’s of the two largest U.S. Exhibitors stands in stark contrast to the position taken by Cinema United, the largest trade organization representing movie theatres. Its President & CEO Michael O’Leary has criticized the merger as most likely to work out badly for exhibitors, specifically highlighting the negative impact of the merger on exhibitors operating 75 screens or fewer, a group that makes up 90% of Cinema United’s membership.
Reports are that AMC and Regal have both received written commitments from Paramount CEO David Ellison that the combined Paramount and Warner Bros. studios will release a minimum of 30 new films to theatres annually, all having at least a 45-day exclusive theatrical window. Ellison has stated this commitment verbally for many months. There’s also a sense from the two largest exhibitors that the deal will probably close eventually, and therefore it’s better to show support now than wait until later. With Ellison threatening to move Paramount out of California if the state’s Attorney General continues to challenge the merger, the stakes for Hollywood are continuing to rise and force players to take sides.
