Cinema United Urges California AG and Paramount-Warner to Settle $110 Billion Merger Dispute

Cinema United, the largest trade organization representing movie theater owners, has reversed its position in California's federal antitrust battle and is now urging both state Attorney General Rob Bonta and Paramount Skydance CEO David Ellison to enter settlement negotiations. In a letter sent Tuesday, August 18, 2026, the group warned that prolonged uncertainty surrounding the proposed $110 billion acquisition of Warner Bros. Discovery threatens the recent momentum of the entertainment industry's recovery.

The shift came shortly after the three largest U.S. theater chains-AMC Theatres, Regal Cinemas, and Cinemark-publicly endorsed the merger, creating a rare alignment between the exhibition industry and the studio. Cinema United, which represents over 30,000 movie screens, previously supported a coalition of state attorneys general seeking to block the deal. The group's leaders, President and CEO Michael O'Leary and board Chair Mike Bowers, stated that the industry's hard-won progress depends on finding a resolution.

Their letter outlined four key conditions for any settlement: commitments to maintain or expand wide theatrical releases with robust marketing and exclusivity...