Cinemark Supports Paramount-Warner Bros. Merger

Cinemark has endorsed the Paramount and Warner Bros. Discovery merger, meaning all three of the country’s major movie theater chains are backing the $111 billion deal.

“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 lengthy statement. “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.”

Notably, Cinemark attributed the letter to a spokesperson rather than its CEO Sean Gamble. Like AMC and Regal, Cinemark has come around to favoring the merger because Paramount Skydance CEO David Ellison has promised to increase the number of new releases, with a pledge to debut at least 30 films a year and keep them in theaters for a minimum 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. “[Paramount is] now offering to put those pledges into written commitments and consent decrees. These are conditions and formal assurances that align with our long-held views, which we at Cinemark support.”

Meanwhile 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. Moreover, cinema operators have been concerned a Warner Bros. sale could disrupt the industry’s hard-fought progress…