Major Theater Chain Cinemark Also Signals It Wants California to Settle With Paramount
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Cinemark has become the third of America's biggest cinema chains, after AMC and Regal, to back a swift resolution of the legal fight over Paramount's proposed $111 billion (£87 billion) merger with Warner Bros. Discovery, and shortly afterwards their trade body Cinema United also reversed its opposition and called for settlement talks. The shift matters because it removed what had been the exhibition industry's united front against the tie-up, leaving California attorney general Rob Bonta and the eleven other states suing to block the deal increasingly isolated as a March 2027 trial date approaches.
Cinemark's unsigned statement, unlike the direct interventions from AMC's Adam Aron and Regal's Eduardo Acuna, cited record box office momentum and called for an "expedited resolution" without naming chief executive Sean Gamble. Cinema United, led by Michael O'Leary, followed on the same day, 18 August, with a letter urging both sides to "meet in good faith to discuss a resolution." The twelve states' complaint, filed 13 July, argues the merged studios would control 30 percent of $100 million-plus wide releases and undermine competition; Paramount's David Ellison has countered by pledging 30 theatrical films a year from each studio for three years and 45-day theatrical windows.
- Cinemark joins AMC and Regal in backing a swift Paramount-Warner Bros. settlement.
- Trade body Cinema United reversed course the same day, urging talks.
- Twelve states still suing to block the $111bn deal ahead of a March 2027 trial.
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Cinemark is one of the largest cinema operators in the United States, alongside AMC and Regal, and its position matters because the exhibition industry has traditionally worried that studios merging together could reduce the variety and number of films shown in theatres. The case centres on Paramount's plan to merge with Warner Bros. Discovery, a deal worth around $111 billion that would bring two major Hollywood studios under one roof. Paramount is now run by David Ellison, following the Ellison family's takeover of the company earlier this year.
A group of US states, led by California attorney general Rob Bonta, has sued to block the merger, arguing it would give the combined studios too much control over big-budget films released in cinemas. Cinema chains initially voiced concerns about consolidation harming independent theatres, but that opposition has been softening as AMC, Regal and now Cinemark have each signalled support for settling the dispute rather than fighting it out in court. Their trade association, Cinema United, has also shifted its stance, calling for talks between the two sides.
The dispute is due to go to trial in March 2027 unless a settlement is reached before then. Paramount has offered concessions, such as guaranteeing a minimum number of theatrical film releases each year and keeping films in cinemas for a set period before they move to streaming, in an effort to address concerns about the merger's impact on the cinema industry.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Theater chains recognise that the exhibition industry depends on healthy competition among studios actively producing and distributing theatrical content. Box office performance has been robust, indicating a functioning market. Rather than pursue protracted litigation with uncertain outcomes, negotiated commitments—including specific theatrical film production targets and protected window lengths—provide concrete guarantees that serve cinema-goers better than years of legal uncertainty. The merged entity will still face competition from other major studios and independent producers, and enforceable conditions address legitimate content availability concerns.
The case against
Antitrust law protects competition and consumer choice; a 30 percent market share in major theatrical releases represents substantial consolidated power that weakens theatres' negotiating position and reduces creative independence across the industry. Whilst voluntary commitments appear valuable, they are temporary and historically unreliable—media consolidation typically produces reduced content diversity and output once regulatory scrutiny diminishes. Accepting settlements in precedent-setting cases encourages further consolidation by signalling that regulators will negotiate rather than block. The states' responsibility is preserving competitive market structure that protects consumers and independent businesses, not deferring to companies' assurances about future behaviour.