Paramount Pledges 30 Films Annually for Three Years to Theaters in Push to Salvage Warner Bros. Merger

Paramount Skydance is offering theater chains a written commitment to release 30 films annually for three years with a 45-day exclusive theatrical window and a 90-day window to streaming, according to Deadline (as reported by Slashdot). The promise, sent to at least one of the top two circuits—specifically Regal, with AMC possibly also receiving it—is designed to secure exhibitor support for the company’s $111 billion acquisition of Warner Bros. Discovery.

Regal boss Eduardo Acuna told Deadline that Paramount CEO David Ellison “is sincere in making these commitments, and he has offered to execute a consent decree to the state AGs to that effect. These are tangible and important commitments that will benefit the industry and which can be measured.” Paramount insiders said no written commitments have been given to exhibitors yet, but Ellison is willing to make non-bespoke offers to any theater chain wanting them, with financial penalties if the agreements are broken.

The pledge comes as the broader exhibition trade group Cinema United (formerly National Association of Theatre Owners) remains firmly opposed to the merger, citing potential negative outcomes for long-term box office, feature film output and job losses. The group has sought another meeting with Ellison but has nothing scheduled, Deadline reported.

The merger, which would create a combined media giant controlling Paramount’s studio, CBS, and cable networks alongside Warner Bros., CNN, HBO and a vast film library, is facing a widening legal battle. California Attorney General Rob Bonta, joined by 11 other Democratic state attorneys general, filed an antitrust lawsuit to block the deal. In a court filing, both sides agreed to suspend the merger until June 2027 or until a judge rules. U.S. District Judge Araceli Martínez-Olguín set a trial for March 2, dealing a blow to Paramount, which had requested a November date.

“The proposed Warner Bros./Paramount merger will mean higher costs, less competition, lower wages, job cuts and fewer movies and TV shows. This merger violates long-standing federal antitrust law. We remain committed to enforcing the law,” Bonta’s office said in a statement, as reported by TheWrap.

The legal delay carries heavy financial penalties. Paramount agreed to pay Warner investors $31 a share plus “ticking fees” of 25 cents per share for every quarter after Sept. 30 until the transaction closes. According to the Los Angeles Times, those fees could add $7 million a day—or $650 million a quarter—on top of the $81 billion already anticipated for Warner shareholders. Paramount also absorbed about $30 billion of Warner Bros. debt. If the deal fails to close by June 4, 2027, Paramount would owe a $7 billion breakup fee.

Ellison has explored relocating Paramount’s historic Los Angeles headquarters to Tennessee or Texas as early as this fall, according to people familiar with the situation. The board has approved the plan, and Ellison shared the concept with his executive leadership team, though he said his preference is to remain in California. The proposal includes potentially selling the 65-acre Paramount lot in Hollywood and the Warner Bros. campus in Burbank to generate revenue to help pay merger costs. Bonta’s office called the relocation talk “another attempt to blackmail the state into letting an illegal deal through.”

The relocation threat mirrors moves by Oracle Corp., co-founded by Ellison’s father Larry Ellison, which shifted its headquarters from Redwood City, Calif., to Austin, Texas, in late 2020, and later announced Nashville as its new headquarters.

Unions remain divided. The Directors Guild and IATSE sent a joint letter to Bonta and Paramount urging a settlement, warning the lawsuit puts both companies in a “state of limbo” and leads to fewer jobs. They sought nine conditions, including keeping studios wholly separate with their own production, marketing and distribution divisions, and keeping Paramount’s headquarters in Los Angeles. But Hollywood Teamsters 399 reasserted its opposition, with Secretary-Treasurer Lindsay Dougherty stating: “Touting worker prosperity, without commitments, while simultaneously threatening their livelihood in the press as a bargaining chip begs the question — what is in this deal for American film and television workers?” SAG-AFTRA and the Writers Guild have also opposed the merger, with the WGA filing its own lawsuit to block it.

Despite domestic hurdles, Paramount has received clearance from 65 foreign regulators, including the UK and European Union. Warner Bros. Discovery CEO David Zaslav expressed confidence the deal will close, saying on an Aug. 6 earnings call, “We have every expectation the transaction will close, and the company will be performing even better than the plan that we presented to [Paramount] when we did our deal.” Ellison himself has defended the acquisition in a New York Times op-ed, arguing the merger does not threaten competition because Hollywood has been transformed by Netflix and other tech giants.

The market remains skeptical. Paramount shares are down more than 28% year-to-date, trading below $10, with Wall Street analysts giving a consensus “reduce” rating.