Top three movie theater chains urge California to settle Paramount lawsuit in win for David Ellison

All three of the nation’s largest movie theater chains are now urging California to settle its antitrust lawsuit against Paramount’s mega merger with Warner Bros.Discovery — a win for Paramount boss David Ellison.Cinemark on Tuesday became the latest major theater operator to toss its hat in the ring, after AMC Theatres and Regal Cinemas previously backed the $110 billion Paramount-WBD merger.“We collectively benefit most when all stakeholders work together in pursuit of shared industry objectives, including creating and releasing compelling films, attracting audiences to theaters and fostering long-term growth,” the country’s third-largest theater chain said in a statement. “To that end, 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.”Theater chains rushed to support the deal after several concessions from Ellison, including a pledge to produce 30 movies theatrically each year and keep them in theaters exclusively for 45 days after release.He has vowed to stick to these commitments for at least three years.It’s also a sign that movie theaters fear a lengthy court battle involving two of Hollywood’s largest studios could do more damage to an industry that is finally showing signs of recovery after the pandemic.Earlier this month, a judge set a March 2027 trial date for the lawsuit filed by 12 lefty state attorneys general, led by California’s Rob Bonta – a much later date than Paramount had been hoping for.

If Ellison isn’t able to reach a settlement with Bonta by Oct.1, Paramount will be forced to cough up a painful “ticking fee” of $7 million per day until the merger is completed.But California’s lawyers could have a tougher time making a case against the deal in court after the three major theaters spoke out in support of the merger, ...