Regal CEO Backs Paramount-Warner Bros. Merger Ahead of March Antitrust Trial

Regal Cinemas CEO Eduardo Acuna released a statement on Wednesday evening throwing his support behind the pending $111 billion Paramount-Warner Bros. Discovery merger. The announcement positions the nation’s second-largest theater chain firmly alongside Paramount-Skydance CEO David Ellison as the deal faces a March 2027 antitrust showdown with state attorneys general. Acuna’s endorsement follows a similar public backing from AMC Theatres CEO Adam Aron just one week earlier, creating a powerful exhibition industry alliance in favor of the controversial studio consolidation.

The Regal chief executive argued that the current legal battle creates unnecessary harm for an industry experiencing robust recovery. Attendance has climbed to levels not seen since 2019, with younger audiences returning to theaters in encouraging numbers and a strong slate of upcoming releases on the horizon. According to Acuna, prolonging the merger dispute threatens to squander this momentum through uncertainty and distraction rather than fostering growth. He emphasized that a thriving studio system remains essential to provide the platform necessary for continued industry expansion.

“This is why, after much consideration, we believe it’s time for Paramount Skydance’s acquisition of Warner Bros. Discovery to move forward,” Acuna stated in his announcement.

Specific Commitments Drive Theater Chain Support

Acuna revealed that he spoke directly with Ellison, who made specific commitments designed to ensure the theater business continues to thrive in a post-merger landscape. These pledges include producing at least 30 theatrical films annually, maintaining a protected theatrical window with 45 days for transactional video-on-demand and 90 days for subscription video-on-demand, and committing these terms for a minimum of three years. The Paramount chief executive also promised a $30 billion annual investment in media content, signaling continued production at scale.

The Regal CEO expressed confidence in Ellison’s sincerity, noting that the studio leader offered to execute a consent decree to state attorneys general formalizing these commitments. This willingness to legally bind the merged entity to specific theatrical terms distinguishes the deal from previous studio consolidations, according to supporters who view it as meaningful protection for exhibition interests. Acuna called for all parties to sit down and work out how to formalize these promises rather than continue fighting in court.

“A long fight in court that extends into spring or summer doesn’t put more films in theaters, and is not beneficial to studios, filmmakers, the guests who go to the movies, or theater businesses like Regal and the people who work for them,” Acuna wrote.

Top Theater Chains Unite Behind Merger

Regal’s backing arrives one week after AMC Theatres CEO Adam Aron published an opinion piece in Variety explaining his own reasons for supporting the deal. With the addition of Regal, Ellison now commands the support of the country’s two largest theater chains, providing crucial allies as he prepares for the antitrust trial. The domestic box office currently stands at more than $6 billion year-to-date, representing the strongest performance since 2019 and bolstering the argument that disrupting the merger could damage ongoing recovery.

The alignment of AMC and Regal behind the merger represents a significant blow to the states’ lawsuit, which California Attorney General Rob Bonta and a coalition of 11 other state attorneys general filed on July 13. The complaint alleges that the merger violates the Clayton Act by diminishing competition in three key markets: wide-release theatrical distribution, top-grossing theatrical distribution, and basic cable licensing. State prosecutors also claim that both theater owners and consumers will suffer financial harm if Paramount and Warner Bros. merge into a single entity.

Exhibition Industry Split on Merger Impact

However, with AMC and Regal now firmly in the Ellison camp, proving that exhibition will suffer in a post-merger industry becomes extremely difficult for Bonta and his legal team. The two chains represent the overwhelming majority of theatrical exhibition capacity in the United States, giving their endorsement substantial weight in antitrust considerations. Their public statements directly contradict the attorneys general’s argument that the merger requires prevention to protect theater companies.

“The AG’s lawsuit argues, in part, that this merger needs to be prevented to protect companies like mine. Well thanks, but no thanks. Their complaint simply gets the economics of our business backwards,” Aron wrote in his July 29 column.

The top two global circuits find themselves at odds with senior exhibition trade organization Cinema United, whose CEO Michael O’Leary remains vehemently opposed to Paramount’s pending acquisition of Warner Bros. Discovery. O’Leary believes that a collapse of theatrical product and box office revenue will prove imminent, drawing parallels to what occurred following the Disney-Fox combination. This split within the exhibition industry highlights divergent views on whether studio consolidation ultimately helps or harms theater operators.

Financial Stakes of Prolonged Legal Battle

Supporters of the merger argue that a prolonged legal trial extending into spring or summer 2027 would cost Paramount hundreds of millions of dollars that would be better spent producing movies. This financial drain could undermine the very theatrical production that exhibition depends upon, creating a self-defeating outcome according to merger proponents. The belief that Ellison’s specific commitments differentiate this deal from the Disney-Fox consolidation drives the support from AMC and Regal, who view the protected windows and minimum film counts as meaningful safeguards.

Acuna emphasized that the industry cannot afford distractions as it builds on current success, warning that uncertainty could prove damaging just as momentum returns to theatrical exhibition. The upcoming release schedule appears strong, positioning theaters for continued recovery if studio production remains robust. Whether the March 2027 trial proceeds as scheduled or parties reach a settlement incorporating Ellison’s commitments will determine the trajectory of both the merger and the broader theatrical landscape for years to come.