Cinemark, one of the three largest theater chains in the country, has publicly supported the Warner Bros. Discovery merger.
Cinemark endorsed the deal in a lengthy statement released on Tuesday, saying that the merger would contribute to the survival of the theatrical ecosystem.
“The enduring 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 around the world,” Cinemark said in a statement from its spokesperson.
“We join those who have recently called for an expedited resolution of the proposed Paramount Skydance and Warner Bros. Discovery merger as prolonged uncertainty runs the risk of diverting time and resources away from achieving these priorities,” it added.
Both AMC and Regal theater chains have already publicly expressed support for the merger, especially after Paramount Skydance CEO David Ellison pledged to release at least 30 films a year in theaters with a minimum run of 45 days.
“We have consistently stated we would look favorably upon media consolidation that increases the quality and output of films released into theaters with sufficient marketing campaigns and theatrical windows, and that is backed by firm commitments to ensure follow-through,” Cinemark’s statement said.
Despite the backing from Cinemark, AMC, and Regal, Variety noted that “Cinema United, the exhibition industry’s main lobbying group, remains opposed to any sale of Warner Bros.”
“The group’s president Michael O’Leary has warned a takeover of the legacy Hollywood studio will lead to fewer films and potential theater closures,” it added. “Moreover, cinema operators have been concerned a Warner Bros. sale could disrupt the industry’s hard-fought progress in the wake of the pandemic and the 2023 strikes.”
Following the Cinemark endorsement, Cinema United called for the attorneys general and Paramount to work out a settlement in the current lawsuit spearheaded by California AG Rob Bonta.
“Despite our concerns about industry consolidation, Cinema United, on behalf of our executive board and the entire exhibition community, today called for the AGs and Paramount to meet and discuss settlement,” it said. “Since the outset, we have been open to steps that will protect the exhibition industry. This is the next step in that process to ensure a thriving industry for generations to come.”
Xavier Becerra, the Democrat nominee for California governor, also called on Bonta to work out a settlement last week.
“I hope it settles before court. It is easier to stand in a conference room and settle than it is to stand in a courtroom. I say that having had to stand both in the conference room and in the courtroom. You get way more done in the conference room than you do in the courtroom,” he said.
Read the full article here
