The proposed $110 billion acquisition of Warner Bros. Discovery by Paramount Skydance is no longer simply a Hollywood corporate story. The deal has opened a significant divide among U.S. movie theater operators, with major chains AMC Theatres and Regal Cinemas supporting the merger while Cinema United, the industry’s principal trade group, continues to oppose it.
The disagreement comes at a particularly important moment for theaters. Domestic box office performance has been improving in 2026, but exhibitors are still dealing with the long-term effects of the pandemic, streaming competition, and a smaller supply of major theatrical releases.
Why AMC and Regal Support the Paramount-Warner Bros. Merger
AMC CEO Adam Aron has publicly supported Paramount’s proposed acquisition, arguing that the merger could strengthen the theatrical business. Regal CEO Eduardo Acuna has also backed the transaction, saying that prolonged uncertainty surrounding the deal could create problems for the industry.
Their position puts the two largest theater chains at odds with Cinema United President and CEO Michael O’Leary. The organization has argued that combining two major film distributors could give the resulting company greater negotiating power over theaters and potentially reduce competition for movie releases.
O’Leary told Variety that Cinema United’s responsibility extends across the entire exhibition industry. He said the organization would continue pursuing
“meaningful and enforceable guardrails”
to protect movie theaters.
The disagreement is especially significant for smaller exhibitors. More than 90% of Cinema United’s members operate fewer than 75 screens, meaning independent and regional theaters could have less leverage than major chains when negotiating with a larger studio.
Theater Owners Fear Fewer Movies and Higher Costs
Opponents of the merger are concerned that another major consolidation could repeat problems associated with previous studio deals. A lawsuit filed by California and 11 other states argues that the combined company could control more than 27% of wide-release theatrical film distribution, potentially giving it substantial bargaining power over exhibitors.
Paramount has defended the transaction and promised that its combined film operation would release at least 30 movies annually. The company has also proposed major cost reductions, arguing that the merger would allow the business to become more efficient while increasing its ability to compete with larger entertainment companies.
Cinema United remains skeptical that a promised film count alone would protect theaters. The group and other exhibitors are also concerned about how the merged company’s financial obligations could influence future production and distribution decisions.
The legal battle is already delaying the transaction. Paramount agreed to postpone the closing until at least June 2027 while the lawsuit moves forward, potentially adding substantial costs to the deal. Reuters reported that Paramount could face quarterly payments of around $650 million to Warner Bros. Discovery shareholders if the transaction remains unresolved.
For movie theaters, the central question is therefore bigger than whether Paramount and Warner Bros. Discovery should become one company. The outcome could determine how much negotiating power exhibitors retain, how many major films reach cinemas each year and whether smaller theaters can compete in an increasingly consolidated entertainment industry.