Cinema United CEO Michael O’Leary is opposing the proposed Paramount-Warner Bros. merger, citing concerns over theater closures, higher costs, and reduced film output.
Key facts
- •Michael O’Leary, CEO of Cinema United, submitted a sworn declaration supporting a temporary restraining order against the merger.
- •The proposed merger involves a $111 billion transaction and a projected $80 billion debt load for the combined company.
- •Paramount agreed to delay the merger until after an antitrust trial or until June 1, 2027.
- •AMC CEO Adam Aron publicly supports the merger, citing David Ellison’s commitment to theatrical releases.
- •Cinema United claims Paramount stopped responding to their concerns on July 1, a characterization Paramount denies.
Cinema United CEO Michael O’Leary has reaffirmed his organization's opposition to the proposed merger between Paramount and Warner Bros. In a letter to theater owners, O’Leary expressed support for litigation filed by state Attorneys General that has successfully delayed the transaction. He argued that the deal could lead to fewer film releases and increased costs for exhibitors and patrons.
By the numbers
Concerns Over Market Impact and Debt
O’Leary expressed skepticism regarding Paramount’s pledge to release 30 films annually following the merger, noting that the combined entity would face an $80 billion debt load. He warned that the financial burden of this highly leveraged transaction could be passed on to theater owners and movie fans. Additionally, he cited the 2019 acquisition of 21st Century Fox by the Walt Disney Company as a historical precedent where film production output decreased following a major studio consolidation.
Dispute Over Negotiations
The Cinema United chief stated that his organization provided a list of concerns to Paramount on July 1 following meetings in Washington, D.C., but has received no response since. A Paramount spokesperson disputed this account, stating that the company provided enforceable commitments regarding two specific items requested by Cinema United, but that the organization’s counsel subsequently introduced new, unrelated demands.
Differing Industry Perspectives
While Cinema United opposes the deal, some exhibitors have expressed support. AMC CEO Adam Aron has endorsed the merger, citing Paramount head David Ellison’s passion for the big screen and his efforts to increase the number of films greenlit at the studio. On July 24, Paramount agreed to postpone the $111 billion transaction until five days after an antitrust trial or until June 1, 2027, whichever comes first.
Timeline
- Last springCinema United requested a meeting with Paramount at CinemaCon, which was declined.
- JuneMichael O’Leary met with Paramount representatives in Washington, D.C.
- July 1Cinema United provided a list of concerns to Paramount.
- July 24Paramount reached an agreement with state attorneys general to postpone the merger.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by Variety.
