Movie Theater Trade Group Reverses Stance, Urges California AG to Settle $110B Paramount-Warner Bros. Antitrust Suit

Cinema United President and CEO Michael O'Leary and board chair Mike Bowers reversed the movie theater trade group’s position Tuesday in California’s federal antitrust fight over Paramount Skydance’s $110 billion acquisition of Warner Bros. Discovery, urging Attorney General Rob Bonta and Paramount CEO David Ellison to negotiate because they said prolonged uncertainty threatened box-office momentum and the entertainment industry.

O’Leary and Bowers said the industry’s recovery depended on the two sides discussing a resolution with protections for theaters and moviegoers. “For many in our industry, the current environment is marked by disruption and uncertainty. That is why we believe that it is incumbent upon both of you to meet in good faith to discuss a resolution that would provide robust protections and serve the entire industry. In fact, it is the next logical step,” O’Leary and Bowers said in a joint statement.

Cinema United explained its reversal in a statement to Fox News Digital on Wednesday, saying concerns about consolidation remained, but settlement talks represented the next opportunity to secure protections for theaters. “Despite our legitimate concerns about industry consolidation, Cinema United, on behalf of our executive board and the entire exhibition community, yesterday called for the AGs and Paramount to meet and discuss settlement,” a Cinema United spokesperson said.

Cinema United said it represented 30,000 U.S. movie screens and had previously supported the coalition of 12 states seeking to block the acquisition. The group requested enforceable safeguards requiring Paramount to maintain or expand wide theatrical releases and exclusive theater windows, prevent higher film-rental terms, preserve theaters’ ability to book titles without onerous conditions and guarantee continued access to both companies’ film catalogs.

The requested safeguards focus on establishing legally binding consent decrees through the California Department of Justice to enforce a standard 45-day exclusive theatrical window. Theater operators are seeking to prevent a consolidated Paramount-Warner Bros. entity from directing high-profile film titles straight to streaming services Paramount+ and Max, while establishing caps to prevent distributor split fees from rising above the traditional 50% to 55% film-rental terms baseline during opening weeks.

Bonta told reporters Tuesday that his office welcomed theater owners’ views but maintained that the proposed transaction violated the law, according to Reuters. “The fact remains that this proposed merger breaks the law. It will lead to job loss. It will lead to wage cuts. It will lead to higher prices for consumers to go to the movies or to watch cable television,” Bonta said. Bonta’s press office separately confirmed that the lawsuit resulted from an antitrust analysis grounded in federal competitive statutes.

Paramount had taken the opposite position in a July statement to Fox News Digital, blaming the state challenge for prolonging the industry’s difficulties. “Delaying this transaction will only harm entertainment workers who have already suffered over recent years as technology has disrupted their livelihood and cost California tens of thousands of entertainment jobs,” a Paramount spokesperson said.

The antitrust trial is scheduled to begin March 2, 2027, in the U.S. District Court for the Northern District of California. Paramount filed a motion requesting U.S. District Judge Rita Lin to require the coalition of states and the Writers Guild of America to post a $1.88 billion bond, citing an ongoing $7 million daily fee incurred after missing a Sept. 30 financing deadline.

The move by Cinema United aligns with major exhibition chains AMC Theatres, Regal Cinemas, and Cinemark, which have joined labor unions including the Directors Guild of America and IATSE in pressing Bonta and Ellison for settlement talks. Domestic box-office receipts reached $6.8 billion as of Wednesday, reflecting a nearly 20% increase over the same period in 2025, fueling exhibitor demands to resolve regulatory litigation before delayed release calendars disrupt theater operations.

California Republican Party Chairwoman Corrin Rankin told Fox News Digital on Wednesday that Bonta should enter negotiations, accusing Democrats of using lawsuits and regulations that increased costs and drove businesses from the state. “Democrats keep writing the same bad script, and Californians are stuck paying the price in higher rent, gas, and grocery bills,” Rankin said.

Republican attorney general nominee Michael Gates urged Bonta to accept the trade group’s invitation and abandon the court challenge entirely. “Bonta should accept Cinema United’s invitation and come to his senses. Frankly, Bonta should drop the lawsuit all together,” Gates said in a statement to Fox News Digital, warning that continued litigation places California media employment at risk.