Cinemark Joins Merger Backers as Cinema United Shifts to Settlement Talks

Key points

• Cinemark CEO Sean Gamble signed a statement supporting the merger, citing Paramount’s pledge to release at least 30 films annually with minimum 45-day PVOD and 90-day SVOD windows.
• Cinema United, led by Michael O’Leary and Mike Bowers, reversed its opposition and called for immediate negotiations between Paramount and California AG Rob Bonta to resolve the antitrust lawsuit.
• The trade group outlined four conditions for settlement: maintaining wide theatrical releases, preventing rental term increases, ensuring broad film access, and preserving access to both studios' catalogs.
• Paramount filed paperwork seeking a $1.88 billion bond from opposing state AGs and the WGA to cover costs associated with the delayed merger and shareholder fees.
• A trial regarding the merger is scheduled for March 2027, with Ellison threatening to relocate Paramount out of California if the states do not negotiate.

Background

This development follows a split in the theater industry earlier in August, where AMC and Regal backed the merger while Cinema United opposed it. Previous coverage noted that the European Commission had already cleared the deal, but the U.S. path remained blocked by state lawsuits. The current shift indicates that major exhibitors are prioritizing industry stability and box office momentum over antitrust concerns, despite previous warnings from Cinema United about reduced film output.

How outlets are covering it

Variety and The Hollywood Reporter highlight the unified front of the top three U.S. theater chains (AMC, Regal, Cinemark) in supporting the merger, emphasizing the risk of prolonged uncertainty to the industry. TheWrap provides a more nuanced view, noting that while Cinema United has softened its stance, it remains opposed to the merger itself and is only open to settlement if specific guardrails are met. TheWrap also reports that previous talks in June failed due to disagreements over the duration of Paramount’s release commitments. Deadline focuses on the legal maneuvering, specifically Paramount’s demand for a $1.88 billion bond from the opposing attorneys general to cover costs, while Variety notes that Bonta has dismissed the proposed behavioral remedies as inadequate.

Why it matters

The shift in support from major theater chains and the trade organization Cinema United could significantly influence the outcome of the antitrust lawsuit. By aligning with Paramount’s commitments, exhibitors are signaling that the economic benefits of the merger outweigh their concerns about consolidation. This pressure may force California AG Rob Bonta and the other state plaintiffs to negotiate a settlement rather than proceed to a trial, potentially accelerating the $111 billion deal and reshaping the global media landscape.

What to watch

The next critical step is a meeting between Paramount CEO David Ellison and California AG Rob Bonta to discuss settlement terms. If negotiations fail, the case will proceed to a trial in March 2027. Paramount has also threatened to move its headquarters out of California if the states do not engage in good faith negotiations. The outcome of these talks will determine whether the merger closes or faces further legal delays.