Cinema United sprang into action this week with a message to lawmakers about the potential negative outcome for a Warner Bros. Discovery sale. Cinema United’s President and CEO, Michael O’Leary, met with representatives from the U. S. House Subcommittee on the Administrative State, Regulatory Reform, and Antitrust to outline the organization’s concerns with both the Netflix and Paramount proposed acquisition of Warner Bros. Discovery. O’Leary characterized either consolidation as likely to have an “irreversible negative impact” on theatres, resulting in massive job loss across the economy.
After O’Leary met with the committee, Cinema United released a statement listing the arguments for the public to consider. The focus of the statement was primarily on Netflix’s proposed deal, highlighting its Co-CEO Ted Sarandos’ numerous comments and long-held belief that releasing movies to theatres is “outmoded.”
More recently, the Netflix chief has stated that the exclusive theatrical release window should “evolve” to something on the order of 1-2 weeks. Cinema United also threw shade on Paramount’s proposed acquisition of WBD, with the inherent risk of concentrating up to 40% of the domestic box office under one studio.
Meanwhile, further developments were taking place this week between the negotiating parties. WBD’s board of directors rejected Paramount’s most recent offer to acquire its rival at $30 per share, citing concern about the debt that Paramount would be taking to finance the deal.
While this rebuff from the WBD board was expected, Paramount is persisting with its offer until the January 21st deadline, when WBD shareholders will need to voice their opinion on the takeover offer.
