Paramount Skydance has taken a major step toward closing its $110 billion acquisition of Warner Bros. Discovery. The studio's leadership has proposed legally binding three-year agreements with the world's largest cinema operators, AMC Entertainment and Regal Cinemas, according to infohub.kz.
Under the terms of the contract, the combined studio would release at least 30 films annually. Each film would get an exclusive theatrical window of at least 45 days, and streaming releases would not appear until at least 90 days after the premiere. Failure to meet these obligations would result in financial penalties.
With this move, Paramount CEO David Ellison aims to neutralize the main argument of attorneys general from 12 U.S. states who are trying to block the merger in court. The authorities claim that the combination of giants would reduce film production. The heads of AMC and Regal have already endorsed the agreement, saying it benefits the film industry.