Regal Cinemas CEO Eduardo Acuna released a statement on Wednesday evening in support of the looming Paramount-Warner Bros. merger.
“This year has been an important one for our industry. Attendance is up, younger audiences are coming out in numbers we haven’t seen in years, and the upcoming release schedule looks just as strong,” Acuna wrote. “While there is real momentum, we need a thriving studio system to ensure that the industry has a platform from which to grow.”
“This is why, after much consideration, we believe it’s time for Paramount Skydance’s acquisition of Warner Bros. Discovery to move forward,” Acuna continued. The CEO explained that he spoke to Paramount-Skydance CEO David Ellison, who has made “some specific commitments” to ensure the theater business continues to thrive. Those commitments include, “At least 30 theatrical films a year, a protected theatrical window with 45 days for TVOD and 90 days for SVOD for a minimum of three years, and a $30 billion annual investment in media content.”
“A long fight in court that extends into spring or summer doesn’t put more films in theaters, and is not beneficial to studios, filmmakers, the guests who go to the movies, or theater businesses like Regal and the people who work for them,” Acuna added. “It just creates more uncertainty and distraction that could be damaging to our industry as we build on our current success.”
Regal’s backing comes a week after AMC Theatres CEO Adam Aron published an op-ed in Variety explaining his own reasons for supporting the deal. With the addition of Regal, Ellison now has the country’s two largest theater chains on his side, which will prove to be key allies as he prepares for a March 2027 antitrust showdown against California attorney general Rob Bonta and his coalition of 11 other state AGs.
The development is a major blow to the states’ lawsuit, which was filed on July 13. It alleges that the $111 billion merger violates the Clayton Act by diminishing competition in three key markets: wide-release theatrical distribution, “top-grossing” theatrical distribution and basic cable licensing. The suit also claims the wallets of theater owners and consumers will be hurt if Paramount and Warner Bros. are allowed to merge. However, with AMC and Regal now in the Ellison camp, it will most likely be extremely difficult for Bonta and his team to prove that the exhibition will suffer in a post-merger industry.
On Tuesday, Judge Araceli Martinez-Olguin issued a ruling that the antitrust trial will last 12 days, running from March 2, 2027, to March 19. In a July 31 motion, Paramount requested the judge schedule the trial in November, while the states and the Writers Guild of America, who are also suing to stop the merger, requested the trial take place in March. Paramount wants this deal done as soon as possible, considering that it has to pay a “ticking fee” to Warner Bros. Discovery of $7 million for every day past Oct. 1 that the deal remains in limbo.
Ellison published an op-ed in the New York Times on Tuesday, in which he wrote that the real reason the state AGs want these deals blocked is that he will control CNN if he’s allowed to scoop up Warner Bros.
“I believe this fight is not really about market share,” Ellison wrote in the essay. “I believe a plainer worry sits beneath the briefs and the news releases: the news. The issue is whether I can be trusted as a steward of Warner’s CNN.” Ellison, reasserting his promise of an independent and fair CNN, added, “When it comes to our news operations, I do not aspire to lead these companies to bend their newsrooms to my views. I believe that news should be based on facts and truth.”
Deadline was the first to report Acuna’s statement backing the merger.
