Paramount offers cinema chains 30-film-a

Paramount offers cinema chains 30-film-a-year pledge to ease Warner Bros. acquisition concerns

The proposed three-year agreements with AMC and Regal would require Paramount to release films exclusively in cinemas for at least 45 days, with a 90-day gap before streaming.

Paramount Skydance has offered major US cinema operators contractual guarantees on theatrical releases as it seeks to address concerns surrounding its proposed acquisition of Warner Bros. Discovery, as per a Bloomberg report.

People familiar with the negotiations said Paramount has proposed three-year agreements with AMC Entertainment and Regal Cinemas that would require the combined company to release 30 films annually in theatres. The proposed commitments are aimed at assuring exhibitors that the merger would not result in fewer movies reaching cinemas.

45-day theatrical window proposed

Under the proposed agreements, the films would remain exclusive to theatres for at least 45 days before becoming available through other distribution channels. The movies would also remain off streaming platforms for a minimum of 90 days.

The agreements would reportedly include financial penalties if Paramount fails to meet the promised release schedule.

Paramount CEO David Ellison has previously said publicly that he intends to maintain or increase theatrical output. The proposed contracts would turn those statements into formal commitments to the two major exhibition companies.

Theater commitments could help merger case

The agreements could also become part of efforts to address an antitrust lawsuit filed by 12 US states seeking to block Paramount's proposed $110 billion takeover of Warner Bros. Discovery.

The states have argued that the transaction could give Ellison and Paramount excessive influence over the film industry. They have also raised concerns that the combination could lead to reduced production and job losses.

Paramount has already been discussing a potential settlement with California Attorney General Rob Bonta, who is leading the states' legal challenge.

A formal commitment to maintain theatrical releases could potentially provide regulators with a concrete measure aimed at addressing concerns about the impact of the merger on cinema operators and film production.

Hollywood remains divided over the deal

The proposed commitments come as the cinema industry remains split over Paramount's Warner Bros. bid.

AMC and Regal have publicly expressed support for Ellison's plans, while Cinema United, which represents theatre operators across the US, continues to oppose the transaction.

Ellison has made the theatrical business a central part of his argument for the acquisition. In a recent opinion piece, he said the deal was rooted in his belief in movies and argued that the combined company could support a larger slate of films.

However, several Hollywood unions, producers and other industry participants remain sceptical. Concerns have partly been shaped by the experience of Disney's acquisition of 21st Century Fox. Despite commitments to maintain film production, the combined company's output subsequently declined.

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Financing adds pressure on Paramount

Paramount would also face substantial financial obligations if the acquisition goes ahead. The company is expected to borrow nearly $50 billion to fund the transaction, increasing pressure to identify significant cost savings while servicing the additional debt.

The deal has already encountered delays because of the legal challenges. Paramount had initially expected the transaction to close by the end of September, but the state lawsuit and a separate challenge from the Writers Guild of America have complicated that timeline.

If the transaction is delayed until a trial expected in March, Paramount could owe Warner Bros. more than $1 billion in late fees under the terms of the agreement.

The commitments being discussed with AMC and Regal therefore serve a dual purpose: reassuring the exhibition industry about the future of theatrical releases while potentially giving Paramount additional arguments as it seeks regulatory and legal approval for the Warner Bros. deal.

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