Paramount CEO Offers Theater Chains 30-Film Guarantee to Win Merger Approval

Paramount CEO David Ellison is offering legally binding three-year contracts to the U.S.'s two largest theater chains, AMC Entertainment and Regal Cinemas, guaranteeing at least 30 theatrical releases per year if the company's merger with Warner Bros. Discovery wins approval.

The contracts would lock in exclusive 45-day theatrical windows for each film and impose a 90-day moratorium on streaming distribution, with financial penalties if Paramount fails to meet its obligations. Paramount has publicly committed to putting the 30-film pledge in writing, a move designed to address antitrust concerns about the combined company hoarding content for its own streaming services.

The merger, valued at $111 billion, faces significant legal headwinds. Twelve state attorneys general, led by California Attorney General Rob Bonta, have filed an antitrust lawsuit claiming the deal would give Paramount-Warner Bros. excessive control over theatrical releases and basic cable television markets. A trial is scheduled to begin in March 2027.

Ellison has taken an aggressive stance in response to the legal challenge. He has threatened to relocate Paramount out of California if Bonta does not negotiate a settlement, escalating tensions between the company and the state's top law enforcement official.

The theater chains have emerged as unlikely allies in the fight. Both AMC and Regal have publicly backed the merger, with their CEOs endorsing Ellison's vision for increased theatrical output.

Meanwhile, California's government has sent mixed signals. While Bonta leads the antitrust charge, the state's Film Commission awarded Paramount $37.3 million in tax credits for two new series—a Clueless sequel and a Viola Davis thriller—expected to begin production in 2027. The credits are part of California's $750 million annual incentive program designed to attract production spending to the state.