Paramount Skydance’s 30‑Film Annual Pledge Linked to $110 bn Warner Bros. Discovery Acquisition
Paramount Skydance has presented three‑year agreements to the United States’ two largest cinema operators—AMC Entertainment and Cineworld Group’s Regal Cinemas—guaranteeing the release of thirty theatrical movies each year, contingent on the successful completion of its $110 billion acquisition of Warner Bros. Discovery, according to Bloomberg sources. Each contracted film will enjoy an exclusive theatrical window of no less than forty‑five days and will not be made available on any online streaming platform for at least ninety days; failure to meet the release commitment would trigger financial penalties for Paramount.
Chief Executive David Ellison, who has publicly pledged to boost the combined studios’ output and support cinema exhibitors, sees the written contracts as a safeguard for theatre operators should the company later alter its distribution strategy. The agreements also serve as a potential framework for resolving an antitrust lawsuit filed by twelve U.S. states that seek to block the Warner Bros. takeover. The states argue that merging Paramount with Warner Bros. would give Ellison excessive control, curtail film production, and lead to job losses. A trial on the antitrust case is scheduled for March.
Both AMC and Regal have recently expressed support for the proposed transaction, warning that an extended court battle would damage the film industry. Conversely, Cinema United—a trade group representing both large and small theatre operators—remains opposed, and Hollywood unions, producers, and other industry workers have raised concerns, citing reduced studio output after Disney’s acquisition of 21st Century Fox.
Paramount is planning to finance the acquisition by borrowing almost $50 billion and will need to generate substantial cost savings to service the resulting debt load. Legal challenges have already pushed back Ellison’s earlier target of completing the deal by the end of September, and the company could owe Warner Bros. more than $1 billion in late fees by the time the antitrust trial commences.