{"id":5146,"date":"2026-07-29T19:37:52","date_gmt":"2026-07-29T19:37:52","guid":{"rendered":"https:\/\/relocationobserver.com\/?p=5146"},"modified":"2026-07-29T19:37:52","modified_gmt":"2026-07-29T19:37:52","slug":"cinema-united-chief-michael-oleary-blasts-paramount-warner-bros-deal-endorses-litigation-to-delay-merger","status":"publish","type":"post","link":"https:\/\/relocationobserver.com\/?p=5146","title":{"rendered":"Cinema United Chief Michael O\u2019Leary Blasts Paramount Warner Bros. Deal, Endorses Litigation to Delay Merger"},"content":{"rendered":"<div>\n<div>\n<!-- do not apply CSS styles to this element! --><\/p>\n<div>\n<p>\n\tThe head of Cinema United is reiterating the lobbying organization\u2019s opposition to Paramount Skydance\u2019s proposed merger with Warner Bros., as well as the group\u2019s support of litigation filed by state Attorneys General that has put the deal on hold.<\/p>\n<p>Read more <a href=\"https:\/\/relocationobserver.com\/?p=5144\">Jason Cloth, \u2018Babylon\u2019 and \u2018Joker\u2019 Financier, Indicted in Alleged $100 Million Ponzi Scheme<\/a><\/p>\n<p>\n\tIn a letter to theater owners on Wednesday, Michael O\u2019Leary, who serves as CEO of Cinema United, argued that \u201cthis transaction will result in fewer movies, higher costs for you and your patrons, and ultimately, fewer theatres. The promises of support for theatrical being made in the media are high-level and unenforceable and as such do nothing to alleviate the harms.\u201d<\/p>\n<p>\n\tO\u2019Leary went on to the tell the organization\u2019s members that he had provided a sworn declaration outlining exhibitors\u2019 concerns in support of the states\u2019 successful motion for a temporary restraining order. The Cinema United chief expressed skepticism about Paramount\u2019s promise it will release 30 films annually after combining with Warner Bros. That\u2019s far more than any other studio produces a year. He noted the combined company will carry a debt load of $80 billion, which could hamper those efforts.<\/p>\n<p>\n\t\u201cWe will continue to argue against the expense of this highly leveraged transaction being passed on to theatre owners and movie fans through increased costs,\u201d O\u2019Leary wrote. \u201cWe will continue to advocate for theatres of all sizes to have access not just to new movies, but also the considerable storehouse of classic films in these two studios\u2019 vast libraries. These are not Hollywood issues, they are Main Street issues, and we are committed to making them relevant not just for this transaction, but to the long-term future of this vital industry.\u201d<\/p>\n<p>\n\tO\u2019Leary said Cinema United\u2019s executive board asked to speak with Paramount at CinemaCon, an annual convention for theater owners and studios that was held last spring, but its invitation was declined. He said he then met with Paramount in Washington, D.C. in June, where he outlined the organization\u2019s reservations about the sale. <\/p>\n<p>\n\t\u201cWe mutually committed to talking further to see if we could align on enforceable commitments that would allay our concerns about the merger,\u201d O\u2019Leary wrote. \u201cOn July 1, after what Cinema United believed were additional constructive conversations with Paramount, we provided them with a comprehensive list of our concerns to move the discussions forward. We have not heard from them since.\u201d<\/p>\n<p>\n\tIn a statement, a spokesperson for Paramount disputed O\u2019Leary\u2019s characterization. <\/p>\n<p>Read more <a href=\"https:\/\/relocationobserver.com\/?p=5142\">Ozzy Osbourne Haunted Experience Is Headed to Universal Studios\u2019 Halloween Horror Nights<\/a><\/p>\n<p>\n\t\u201cWe met with Cinema United in Washington in June and mutually committed to talking further to see if we could align on enforceable commitments related to two distinct items Cinema United requested. We provided enforceable commitments to Cinema United but then their counsel introduced new demands unrelated to the merger. Notably Cinema United uses the same law firm that represents multiple clients opposed to our merger. \u00a0We would be pleased to work with Cinema United or their members as they are our partners.\u201d<\/p>\n<p>\n\tO\u2019Leary also turned to historical precedents to explain his opposition, noting that when the Walt Disney Company acquired much of 21st Century Fox in 2019, the number of films the companies produced shrank considerably.<\/p>\n<p>\n\t\u201cCinema United has not wavered on our list of concerns and will continue to press for meaningful, tangible guardrails to ensure that this transaction, the largest in the history of Hollywood, does not have the same negative impact on the global box office that you experienced after Disney\/Fox,\u201d O\u2019Leary wrote. \u201cToo often, this transaction has been viewed as a Hollywood transaction, and the real-world impact \u2013 the Main Street impact \u2013 on businesses like yours has taken a back seat. Despite well-orchestrated media campaigns attempting to win the public relations battle, we have ensured that the potentially devastating impact the merger will have on theatrical is not overlooked.\u201d<\/p>\n<p>\n\tOn July 24, Paramount reached an agreement with a coalition of state attorneys general to postpone the Warner Bros. Discovery merger until after an antitrust trial. As part of that deal, Paramount agreed not to close the $111 billion transaction until five days after a trial is held or June 1, 2027, whichever is earlier. <\/p>\n<p>\n\tDespite Cinema United\u2019s opposition, some exhibitors have endorsed Paramount\u2019s plans to buy Warner Bros. AMC, the world\u2019s largest cinema chain, has come out in support for the transaction, arguing that Paramount and its head David Ellison are passionate defenders of the big screen and will invest in the sector.<\/p>\n<p>\n\t\u201cI greatly appreciate David Ellison\u2019s track record of success and his passion to make movies that will dazzle audiences the world over,\u201d AMC\u2019s CEO Adam Aron said in a statement last April. \u201cIn just the short time he has owned Paramount Pictures, he already has begun to assemble a superb team around him and already has been increasing the number of movies being greenlit at Paramount.\u201d<\/p>\n<p>Read more <a href=\"https:\/\/relocationobserver.com\/?p=5140\">\u2018The Daily Show\u2019 Sets 30th Anniversary Podcast Hosted by News Team (EXCLUSIVE)<\/a><\/p>\n<p>\n\tA spokesperson for Paramount said . <\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Cinema United Chief Michael O&#8217;Leary warner members that the Paramount Warner Bros. deal would result in fewer movies and theaters.<\/p>\n","protected":false},"author":1,"featured_media":5145,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[4086,3253,1517],"class_list":["post-5146","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-film","tag-cinema-united","tag-paramount-warner-bros","tag-paramount-3"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Cinema United Chief Michael O\u2019Leary Blasts Paramount Warner Bros. 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