In a notable move for the cinematic landscape, Regal Cinemas CEO Eduardo Acuna has voiced strong support for the impending merger between Paramount and Warner Bros. This announcement comes as both companies navigate significant legal hurdles ahead of the deal.
A Positive Shift in Audience Engagement
Acuna articulated the encouraging trends within the film industry, stating, “This year has been an important one for our industry. Attendance is up, younger audiences are coming out in numbers we haven’t seen in years, and the upcoming release schedule looks just as strong.” However, he emphasized the necessity of a robust studio system to sustain and build upon this momentum.
Commitments to Theatrical Releases
After discussions with Paramount-Skydance CEO David Ellison, Acuna underscored critical commitments that could bolster the theater business. These commitments include producing “at least 30 theatrical films a year” and maintaining a protected theatrical window of 45 days for transactional video on demand (TVOD) and 90 days for subscription video on demand (SVOD) over a minimum of three years. Additionally, a substantial investment of $30 billion annually in media content has been pledged.
The Need for Timely Resolution
Acuna cautioned against prolonged legal battles, stating, “A long fight in court that extends into spring or summer doesn’t put more films in theaters, and is not beneficial to studios, filmmakers, the guests who go to the movies, or theater businesses like Regal and the people who work for them.” He expressed concern that such conflicts could create uncertainties detrimental to the industry’s current success.
AMC Joins Forces with Regal
Regal’s endorsement follows AMC Theatres CEO Adam Aron’s op-ed in Variety, outlining his reasons for supporting the merger. With the backing of both major theater chains, Ellison has secured influential allies in advance of a critical antitrust trial slated for March 2027, led by California Attorney General Rob Bonta and a coalition of eleven other state AGs.
Legal Challenges Ahead
The merger’s prospects have been complicated by a lawsuit filed on July 13, alleging that the $111 billion acquisition violates the Clayton Act by reducing competition across several key markets. The suit claims that theater owners and consumers will face negative consequences if the merger proceeds. Despite these legal challenges, the support from both AMC and Regal may significantly bolster Ellison’s position against the states’ claims.
Industry Divisions on the Merger
Despite the backing from Regal and AMC, Acuna and Aron find themselves at odds with Cinema United, the exhibition trade group led by Michael O’Leary. O’Leary has publicly criticized the prospective sale, suggesting it would result in fewer films and higher costs for consumers, claiming the promises made are “high-level and unenforceable.”
Impending Antitrust Trial
Judge Araceli Martinez-Olguin has set the antitrust trial to span twelve days from March 2 to March 19, 2027. Paramount had sought a November trial date; however, state AGs pushed for a March schedule. Paramount faces urgency in finalizing the merger, incurring a “ticking fee” of $7 million per day past October 1 if the deal remains unresolved.
Concerns Over Media Influence
In a recent op-ed published in the New York Times, Ellison highlighted the underlying issues motivating the opposition to the merger, suggesting concerns are rooted in his potential control over CNN. He asserted his commitment to maintaining the integrity of its news operations, stating, “I believe that news should be based on facts and truth.”
Deadline first reported on Acuna’s supportive statement regarding the merger, a development that could prove pivotal for both the theater industry and the future of media entertainment.
