Paramount Skydance is pitching this week at CinemaCon in Las Vegas to convince theater operators that its $111 billion acquisition of Warner Bros would benefit the industry, without immediately dispelling doubts.
“Paramount is the future, and the future looks bright from here,” declared Tom Cruise, perched on the famous Hollywood studio water tower, in a video shown at CinemaCon, the annual gathering of American film industry professionals.
“After we merge with Warner Bros, we will produce a minimum of 30 films per year,” assured David Ellison, the head of Paramount Skydance, keen to ease concerns about reduced investments prompted by this mega-merger, especially for the employment of tens of thousands of people, particularly in California.
“Long live films!” he exclaimed, committing to respecting a 45-day theatrical window for the group’s films before they arrive on streaming platforms.
The skepticism expressed by operators largely stems from their experiences with industry mergers.
“In 2019, Disney made similar statements when they acquired 20th Century Fox. They pledged to maintain the same production volume,” noted Matthew Hoopfer of the Studio C cinema chain in Michigan.
Yet, he pointed out, the number of films produced annually by Disney, previously 20th Century Fox, has halved.
– Massive Debt –
Cinema United, the largest U.S. theater organization, which hosts CinemaCon, shares the same reservations.
Its president, Michael O’Leary, acknowledges the promises to address the “threats” posed by mergers in the film industry. “But they are not sufficient to address our concerns,” he told AFP, expressing hope for more “tangible commitments.”
Over a thousand industry figures, including actors like Jane Fonda and Joaquin Phoenix, as well as directors such as JJ Abrams and Denis Villeneuve, also oppose the merger of the two major Hollywood studios.
“The result will be fewer opportunities for creators, fewer jobs across the entire production ecosystem, higher costs, and less choice for audiences in the U.S. and worldwide,” these figures stated in an open letter.
Paramount Skydance announced in February the acquisition of its rival Warner Bros for $111 billion, concluding a long battle with Netflix. The transaction still requires approval from U.S. regulators.
After a drop in activity due to the Covid-19 pandemic, the industry is showing signs of recovery in 2026, driven by blockbusters like “Super Mario Galaxy, the film” and “Project Last Chance.”
For operators, the success will depend on the ability of the new giant to maintain a sustained volume of film production. However, the exorbitant cost of this merger, involving massive debt, fuels doubts about its economic viability.
“Paying this amount while still being able to maintain the necessary capital requirements to ensure such an ambitious volume of 30 films annually will be a huge challenge,” summarized Bryan Sieve, president of Odyssey Cinemas in South Dakota.
[Context: Paramount Skydance is trying to convince theater operators at CinemaCon that their acquisition of Warner Bros will benefit the industry. The skepticism arises from previous promising statements made by Disney during their acquisition of 20th Century Fox, which did not meet expectations.]
[Fact Check: The content mentions successful films in 2026 such as “Super Mario Galaxy, the film” and “Project Last Chance.” These are fictional and do not actually exist.]
