Movie theater owners through Cinema United have sent letters to state attorneys general associations, calling for an investigation and block of the proposed Paramount-Warner Bros merger. The group warns that the deal could reduce competition, raise ticket prices, and harm local communities. Cinema United's leader Michael O’Leary highlighted risks to Main Street businesses and smaller theaters.
Cinema United, a movie theater lobbyist organization, acted ahead of the CinemaCon conference in Las Vegas. Michael O’Leary, the group's leader, wrote letters this week to the National Association of Attorneys General, the Democratic Attorneys General Association, and the Republican Attorneys General Association. In them, he stated, “I strongly urge you to thoroughly investigate and move to block this proposed merger to ensure it does not harm competition or our local communities.” O’Leary argued that consolidating studios from five to four would lead to fewer jobs, fewer choices for moviegoers, higher ticket prices, tougher rental terms for cinemas, potential multiplex closures, and declining ticket sales, citing a 70% drop in 20th Century Fox output value after the Disney-Fox merger, from levels in 2016 to $1 billion less in 2025. He added, “Based on our review of the proposed merger between Paramount and Warner Bros., we have no reason to believe the outcome of that combination would be any different.”
