3 weeks ago
Paramount defended its projected merger pinch Warner Bros. Discovery to California Attorney General Rob Bonta, who is considering a situation to nan transaction.
In a missive to Bonta past week, Paramount’s main ineligible officer, Makan Delrahim, said that nan mixed companies would person nan inducement to boost theatrical distribution, not trim it.
Delrahim wrote, “Paramount’s projected merger pinch WBD will thief thrust meaningful improvements for movie theaters and their audiences. To compete much efficaciously pinch Netflix, and others starring services, a mixed Paramount-WBD will request to seizure audiences’ attraction successful caller ways, and that includes broadening theatrical distribution to pat into nan magic of nan moviegoing acquisition and create momentum down films earlier they scope streaming services.”
Read Paramount missive to Rob Bonta.
Delrahim wrote that pinch nan merger, nan companies “will person each inducement to get much films into wider distribution connected much movie theatre screens—it is really it will compete for audiences crossed nan intermezo ecosystem.” He repeated Paramount CEO David Ellison’s committedness to merchandise 30 films annually and to person a 45-day theatrical model astatine a minimum for each release.
“That promise makes sense: theaters are a halfway portion of nan mixed firm’s strategy to thrust engagement some connected and disconnected nan large screen,” Delrahim wrote.
The missive besides repeated different arguments, including that nan transaction would amended let Paramount to compete astatine standard against Netflix. Delrahim noted that Paramount captures “only 5.8% of US SVOD viewership, and WBD 5.0%.9 By comparison, nan apical 3 streaming subscription platforms together seizure 65% of each U.S. SVOD viewers—Netflix pinch 32.5%, Disney 16.7%, and Amazon 15.3%.10 Absent thing transformative, neither statement is positioned to turn to a standard wherever they would drawback up to nan starring streamers.”
Delrahim besides challenged figures from Cinema United, nan waste and acquisition relation for exhibitors, which is opposing nan deal. He cited figures showing that Paramount and Warner Bros. mixed correspond astir 25% of nan home container office, citing OpusData of 4,000 theatrical releases complete nan past 5 years. He claimed that figures from Cinema United, showing a 35% home container agency share, only captured revenues for nan first half of 2025.
“In this environment, Paramount must proceed to compete aggressively to find outlets for its films, pinch galore different substitutes disposable for theaters to capable their screens,” Delrahim wrote.
Delrahim besides distinguished nan Paramount-WBD merger from nan Disney-Fox transaction of 2019, which critics person cited successful opposing nan merger. The Disney-Fox woody led to a simplification successful released.
“Disney acquired Fox conscionable a twelvemonth earlier nan 2020 pandemic, soon earlier launching Disney+, a sea-change arena that forced monolithic changes to each movie distributor’s go-to- marketplace strategy,” wrote Delrahim, who led nan Justice Department’s Antitrust Division erstwhile it signed disconnected connected nan Disney-Fox transaction.
He added, “Paramount’s strategy, successful contrast, is informed by nan marketplace arsenic it exists successful nan aftermath of nan pandemic—with 3 streaming giants dominating assemblage attraction connected nan 1 hand, and theaters slow reemerging arsenic a captious trading motor and taste arena that tin support Paramount-WBD’s efforts to compete successful nan intermezo ecosystem connected nan other.” Delrahim besides contended that Disney already was reducing its theatrical releases earlier it acquired nan Fox assets.
One of nan concerns raised by opponents is that nan woody would usher successful monolithic occupation loss. Paramount has not made circumstantial occupation commitments. Ellison has said that nan 2 studios will run separately. In his letter, Delrahim wrote, “Paramount and WBD’s studios will each merchandise astatine slightest 15 films per year, and support afloat unit to support accumulation and distribution, to guarantee this target is hit. No specified committedness was made erstwhile Disney acquired Fox.”
Paramount’s missive besides noted expressions of support from James Cameron and Adam Aron, nan CEO of AMC Entertainment.
A spokesperson for Bonta said successful consequence to nan letter, “The Paramount acquisition of Warner Brothers remains an progressive investigation and we do not person immoderate updates to stock astatine this time.”
Bonta told Deadline successful March, “Whenever there’s awesome firm consolidation for illustration this, there’s a interest that we mightiness spot accrued prices, little wages, simplification successful competition, limits successful choice, little quality, each those things. That’s why location is antitrust rule successful nan first place.”
Democratic lawmakers successful Washington person warned of nan transaction, pinch Sen. Cory Booker (D-NJ) holding a “spotlight” proceeding that featured figures including Mark Ruffalo and documentary filmmaker David Borenstein. More than 5,000 filmmakers, manufacture professionals and others person signed connected to an unfastened missive opposing nan transaction, including caller signees Jason Alexander, Tim Robbins, W. Kamau Bell and Lucy Fisher, per organizers.
Semafor first reported connected nan Paramount letter.
