Cinemark backed the merger between Paramount and Warner Bros. Discovery, meaning the three largest cinema chains in the country support the $111 billion deal.
"The lasting success of our industry requires a healthy theatrical ecosystem supported by financially sound studios and exhibitors that can effectively create, distribute and exhibit high-quality films to consumers worldwide," a Cinemark spokesman said in an extensive statement. "We join those who have recently called for an accelerated resolution of the proposed merger between Paramount Skydance and Warner Bros. Discovery, as prolonged uncertainty risks diverting time and resources from achieving these priorities."
Meanwhile, Cinema United, the main lobbying group of the exhibition industry, remains opposed to any sale of Warner Bros. The group's president, Michael O'Leary, has warned that the acquisition of the historic Hollywood studio will result in fewer films and possible theatre closures.
Cinemark acknowledged the awkward division between the trade organisation and its three largest members, writing that the chain is "highly encouraged by the constructive dialogue taking place between Paramount Skydance and Cinema United". "We respect and appreciate Cinema United's advocacy on behalf of all theatrical exhibition and view these conversations as significant progress towards achieving outcomes that support the health and long-term success of our industry".
Cinemark's statement follows backing from AMC Theatres and Regal Cinemas. AMC chief executive officer Adam Aron has supported the merger since CinemaCon in April, arguing that the combined company would strengthen the film business. Recently, Regal's head, Eduardo Acuña, added his voice to the chorus, warning that delaying the merger could create "more uncertainty and distraction that could be harmful to our industry as we build on our current success".
Acuña is referring to the fact that this summer's box office is already the largest since "before the difficult times", with revenues exceeding $4 billion for only the second time since COVID. There is a possibility that the summer season could even exceed the all-time record set in 2023 with $4.755 billion (unadjusted for inflation), according to Rentrak. Meanwhile, annual domestic revenues could reach $10 billion for the first time since 2019.
Theatre operators have expressed concern that any sale of Warner Bros. would disrupt the hard-won industry progress following the pandemic and the 2023 strikes. When Disney acquired 20th Century Fox in 2019 and exited the business with one major studio fewer, the combined company's film production dropped dramatically. However, Paramount Skydance chief executive David Ellison has promised to increase the number of new releases, with a commitment to release at least 30 films a year.
"This transaction will result in fewer films, higher costs [...] and ultimately, fewer theatres," O'Leary wrote in a late-July memo to exhibitors. "Promises of support for cinema that are made in the media are high-level and non-binding and, as such, do nothing to alleviate the harm".
Paramount is facing an antitrust lawsuit from a coalition of 12 states to block the acquisition of Warner Bros. Discovery. With the merger stalled (and facing a trial in 2027), Ellison is threatening to pull Paramount out of California starting in October if the states refuse to negotiate.
