Paramount offers cinema chains written pledge for 30 annual movie releases

Paramount Skydance has extended contracts to leading cinema chains, AMC Entertainment and Cineworld Group’s Regal Cinemas, committing to release at least 30 films annually if it finalizes its $110 billion acquisition of Warner Bros. Discovery, according to Bloomberg. These three-year deals assure an exclusive theatrical window of 45 days or more for each film, with no availability on online streaming platforms for 90 days or longer.

Paramount CEO David Ellison has pledged to boost the studios' output and support cinemas, but the contracts offer theater operators a safeguard if the company alters its strategy. The agreements could also serve as a potential basis for resolving a pending antitrust lawsuit filed by 12 U.S. states, which aims to prevent the Warner Bros. acquisition.

Paramount has attempted to engage with California Attorney General Rob Bonta, who is spearheading the case, while the states argue that the merger would concentrate too much power in Ellison's hands, stifle film production, and cause job losses. A trial is set to commence in March. AMC and Regal have expressed support for the proposed transaction, stating that a prolonged legal battle would be detrimental to the film industry.

However, Cinema United, which represents both large and small theater operators, remains opposed. Hollywood unions, producers, and other industry workers have also expressed skepticism towards Paramount's assurances, pointing to a decline in studio output following Disney's acquisition of 21st Century Fox. Paramount is expected to take on nearly $50 billion in debt to finance the acquisition, necessitating billions in cost-cutting to service the mounting obligations.

Legal hurdles have postponed the original timeline of completing the deal by the end of September, and the company may owe Warner Bros. over $1 billion in late fees by the time the antitrust trial begins.