The head of Cinema United is reiterating the lobbying organization’s opposition to Paramount Skydance’s proposed merger with Warner Bros., as well as the group’s support of litigation filed by state Attorneys General that has put the deal on hold.
In a letter to theater owners on Wednesday, Michael O’Leary, who serves as CEO of Cinema United, argued that “this transaction will result in fewer movies, higher costs for you and your patrons, and ultimately, fewer theatres. The promises of support for theatrical being made in the media are high-level and unenforceable and as such do nothing to alleviate the harms.”
O’Leary went on to the tell the organization’s members that he had provided a sworn declaration outlining exhibitors’ concerns in support of the states’ successful motion for a temporary restraining order. The Cinema United chief expressed skepticism about Paramount’s promise it will release 30 films annually after combining with Warner Bros. That’s far more than any other studio produces a year. He noted the combined company will carry a debt load of $80 billion, which could hamper those efforts.
“We will continue to argue against the expense of this highly leveraged transaction being passed on to theatre owners and movie fans through increased costs,” O’Leary wrote. “We will continue to advocate for theatres of all sizes to have access not just to new movies, but also the considerable storehouse of classic films in these two studios’ vast libraries. These are not Hollywood issues, they are Main Street issues, and we are committed to making them relevant not just for this transaction, but to the long-term future of this vital industry.”
