Paramount to Reopen Bay Theater in Pacific Palisades by Year's End

Key points

• Paramount Pictures and developer Rick Caruso announced plans to reopen the Bay Theater in Pacific Palisades later in 2026.
• The five-screen multiplex, located in Palisades Village, has been closed since the January 2025 wildfires damaged the area.
• The Lot, a luxury dine-in theater chain based in San Diego, will handle operations for the venue.
• The theater will showcase first-run theatrical releases from all studios, classic films, and special experiential events.
• The deal was discussed between Caruso and Skydance CEO David Ellison during the Paramount acquisition process last year.
• Palisades Village, owned by Caruso, reopened in August 2026 after over $100 million in renovations and remediation.

Background

The Bay Theater is located in Rick Caruso’s Palisades Village shopping center, which reopened in August 2026 after extensive repairs following the January 2025 wildfires. The venue’s current iteration debuted in 2018, while the original Bay Theater on Sunset Boulevard closed in 1978. The takeover occurs shortly after Paramount completed its acquisition of Warner Bros. Discovery, forming Skydance, which must release at least 30 films annually per an antitrust settlement. The Lot, which will manage the theater, operates luxury dine-in locations in La Jolla, Newport Beach, and other California cities.

How outlets are covering it

Variety, The Hollywood Reporter, Deadline, and the Los Angeles Times all confirm the Paramount takeover and The Lot’s operational role. Variety and THR emphasize the cultural significance of the theater to the Pacific Palisades community, quoting David Ellison on the venue’s role in neighborhood resilience. The LA Times highlights the business context, noting the deal was discussed during the Paramount-Skydance merger and that Paramount declined to disclose lease terms or investment size. THR frames the reopening within a broader LA cinema revival, citing other recent theater acquisitions by Sony, Amazon, and Netflix. All outlets agree on the timeline (later this year) and the programming mix (first-run, classics, events).

Why it matters

The reopening signals a strategic commitment by Skydance/Paramount to theatrical exhibition, countering streaming dominance and fulfilling antitrust obligations. It also marks a symbolic recovery for Pacific Palisades, a community devastated by the 2025 wildfires, and reinforces the viability of luxury dine-in theater models in post-pandemic Los Angeles.

What to watch

The Bay Theater is expected to open later in 2026, though no specific date has been set. Paramount and The Lot will likely announce programming details and renovation timelines in the coming months. The success of this venue may influence future theater investments by major studios in Los Angeles.