David Ellison, CEO of Paramount Skydance, has agreed to sign legally binding three-year contracts with AMC Entertainment and Regal Cinemas guaranteeing that Paramount will release 30 films theatrically each year if the company’s $111 billion acquisition of Warner Bros. Discovery closes, according to Bloomberg and Variety. The contracts include a 45-day exclusive theatrical window for each film and a commitment to delay streaming releases for at least 90 days, with potential financial penalties if Paramount fails to meet the pledge.
The binding commitment represents a major shift from Ellison’s earlier verbal pledges on the 30-film slate, which he first announced at CinemaCon in April 2026. By putting the promise into written, enforceable contracts, Ellison is directly addressing antitrust concerns raised by 12 state attorneys general who filed a lawsuit in July 2026 challenging the merger. The states argue that combining two of Hollywood’s remaining major studios could give the merged company excessive control over theatrical releases and harm both consumers and movie theaters.
The CEOs of both AMC and Regal have publicly backed the merger in recent weeks, signaling their support for Ellison’s theatrical commitments. According to Variety, Ellison is under pressure to find an out-of-court settlement with state attorneys general before an antitrust trial scheduled to begin in March 2027. However, it remains unclear whether the 30-film guarantee alone will satisfy the states’ broader concerns about consolidated media power in both theatrical distribution and basic cable television.
Paramount has already secured approvals from international regulators, including the UK Competition and Markets Authority and the Competition Commission of South Africa. The U.S. Department of Justice did not bring a federal challenge to the deal in June 2026. On July 24, Paramount agreed to delay the merger closing until as late as June 4, 2027, allowing time for the antitrust litigation to proceed. The merger was originally expected to close in the third quarter of 2026.
In a New York Times op-ed published in early August, Ellison acknowledged that he cannot guarantee the financial success of individual films but emphasized his commitment to volume and theatrical support. “What I can promise is the work, and more of it,” he wrote, citing his track record with films including “Top Gun: Maverick,” which exceeded box office expectations, and “Terminator: Dark Fate,” which fell short. The broader question of whether 30 films per year—regardless of their individual quality or commercial appeal—will meaningfully boost theatrical revenue remains contested. Paramount itself has acknowledged that its expanded 2026 slate of 15 films is generating “significantly lower theatrical revenue year-over-year due to lower average box office revenue per film,” the company told Wall Street.
Sources
- Variety — Ellison’s offer of three-year contractually enforceable commitments to AMC and Regal, including 45-day window and penalty provisions; antitrust lawsuit details and trial date; CEO endorsements
- Bloomberg — Paramount’s three-year agreements to AMC and Regal guaranteeing 30 films per year with 45-day exclusive window and 90-day streaming delay
- The Wrap — Paramount’s commitment to put 30-film pledge in writing with 90-day theatrical window
- New York Times — Ellison’s op-ed on theatrical commitments and financial performance uncertainty; merger delay agreement
- CNBC — Paramount’s agreement to delay merger closing until June 2027
- NBC News — Merger delay to as late as June 2027 pending antitrust proceedings
- Reuters — Federal judge’s pause on merger through August 3; antitrust lawsuit by state attorneys general
