Paramount-Warner Bros Discovery merger sparks concern amongst cinema operators

Published: 2026-04-15 00:57:34 ET PSKY

Opposition to the tie-up between Paramount Skydance and Warner Bros Discovery continues to mount, as cinema professionals fear a new wave of concentration at the expense of film diversity and competition.

Esteban Tesson

Published on 04/15/2026 at 12:57 am EDT

During CinemaCon in Las Vegas on Tuesday, Michael O'Leary, President and CEO of Cinema United, called on regulators to block the deal, arguing it would grant the future group excessive leverage over theatrical releases, exhibition windows and screen allocation. Cinema United is the leading trade organization for the motion picture exhibition industry.This stance comes after Paramount Skydance announced its acquisition of Warner Bros Discovery on February 27 in a deal valuing the group at $110bn, following Netflix's withdrawal. The transaction, expected to close in Q3 2026, subject to regulatory approvals, aims to create a premier entertainment powerhouse by combining Paramount+, HBO Max and Pluto TV.The President and CEO of Paramount Skydance has maintained that both studios will continue to operate separately and that the new entity will release at least 30 films per year in cinemas. However, operators remain skeptical. Michael O'Leary believes industry history shows that consolidation often results in fewer films and increased control over release windows and scheduling.Opposition extends beyond cinemas, with over 1,000 industry figures, including Jane Fonda, Joaquin Phoenix and Mark Ruffalo, also fearing a decline in production diversity and a reduction in competition.