Exhibitor group Cinema United, which previously called on Paramount CEO David Ellison and California attorney general Rob Bonta to settle their antitrust case, issued a cautiously upbeat statement on Tuesday after the parties announced a settlement on Monday.
The settlement paves the way for the $111bn Paramount-Warner Bros Discovery merger and the trade association has been staunchly anti-merger in the past. However Cinema United indicated a more nuanced stance last month when it urged the parties to settle and introduce guardrails that would dictate to some extent how a combined Paramount and Warner Bros Discovery will operate.
On Tuesday Cinema United president and CEO Michael O’Leary said the settlement “accomplishes many of exhibition’s objectives”. As outlined by Bonta, the five-year consent decree, a legally binding document, stipulates that the combined company will release 30 theatrical features a year rising to 32 after two years, and commit $1.5bn in US producton spend, among other terms.
Separately, it emerged on Tuesday afternoon that a federal judge will hold a hearing on Thursday (September 24) to rule on the settlement and address outstanding questions.
The full Cinema United statement appears below.
“For nearly a year, and throughout multiple efforts to acquire the iconic Warner Bros. Studios, Cinema United has remained steadfast in its primary objective to safeguard theatres of all sizes across this great nation and around the world from the harms of legacy studio consolidation.
”The agreement announced yesterday accomplishes many of exhibition’s objectives. The consent decree includes language on increased film production for five years, meaningful theatrical exclusivity and wide distribution, prohibitions on cost increases, and continued access to the catalogs of Paramount and Warner Bros. While no settlement can eliminate all risk from a merger of this size, these conditions will enable our industry to adapt and succeed in a rapidly changing media environment.
“The State Attorneys General’s lawsuit and, now the consent decree, strongly validates that movie theatres are the beating heart of Main Street America and the entire U.S. film industry. Cinema United appreciates the efforts of both the State Attorneys General and Paramount to resolve the merger lawsuit.
”Our focus now shifts back to our bright future. For well over 100 years, global exhibition has worked closely with both Paramount and Warner Bros. to deliver amazing big screen experiences to fans around the world. We look forward to strengthening these historic partnerships to ensure that going to the movies remains the premier entertainment option for generations to come.”
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