Paramount Skydance has agreed to sign contracts with major US cinema chains guaranteeing the release of 30 films a year in cinemas after its planned takeover of Warner Bros, according to sources familiar with the matter.
The agreements are intended to address concerns that the enlarged studio would become too dominant in the US film industry after the $110 billion (€95.59 billion) acquisition.
Under deals with the two biggest cinema chains, AMC Entertainment Holdings and Cineworld Group’s Regal Cinemas, films would be shown exclusively in cinemas for at least 45 days.
They would not be available on streaming services for at least 90 days.
The contracts formalise commitments that Paramount chief executive David Ellison had previously made verbally. By putting them in writing, the studio could face financial penalties if it fails to honour those promises, Bloomberg reported, citing sources.
The proposed Warner Bros takeover has already faced strong opposition. Twelve US states have filed a lawsuit to block the deal, arguing that the combined company would become too large and weaken competition.
Paramount is seeking a settlement, and the agreements with cinema chains could help its case.
Opinion in Hollywood remains divided. AMC and Regal have warned about the harmful effects of a prolonged legal battle, while industry group Cinema United continues to oppose the merger.
Ellison has insisted that the aim is not to squeeze the film business but to get more films into cinemas.
However, trade unions and writers remain sceptical and fear job losses across the sector.
They point to Disney’s takeover of 20th Century Fox as a warning. That deal was also presented as a way to make more films, but the opposite happened.
Paramount will also need to borrow heavily to finance the acquisition, taking on around $50 billion (€43.45 billion) in debt, which has raised concerns that cost-cutting could follow.
