Cinema United urges California to resolve Paramount-Warner merger

Investing.com -- Cinema United called on California Attorney General Rob Bonta and a representative identified as Mr. Ellison to meet and discuss resolving California's legal challenge to Paramount's proposed acquisition of Warner Bros. Discovery.

The global theatrical exhibition trade organization sent a letter on Tuesday addressing the pending state challenge to the merger. Cinema United described theatrical exhibition as a Main Street industry that supports not only studios and theater owners but also nearby restaurants, coffee shops, bars and shopping.

The organization said it has 196 members operating in the twelve states involved in the litigation. Most are independent or family-owned theaters, with 130 operating fewer than ten screens, 90 with less than five screens, and 30 operating single-screen theaters.

Cinema United said it has engaged with both the coalition of State Attorneys General and Paramount. The organization outlined four core elements it believes any resolution must include: a long-term commitment to maintain or expand wide-release theatrical movie production with a meaningful period of theatrical exclusivity; provisions ensuring the merger will not increase rental terms for theater owners; enforceable safeguards to ensure broad access to films for theaters of all sizes; and continued access to the film catalogues of both Paramount and Warner Bros. under reasonable conditions.

The organization stated it stands ready to assist and urged both parties to explore a resolution as soon as possible.

You May Also Be Interested In

• Citadel unwinds 80% of Aschenbrenner’s portfolio risk - report
• OBOOK Holdings posts $18.8M net loss as OwlPay Harbor volume rises
• Breeze Acquisition Corp. II gets Nasdaq notice for late 10-Q filings