Paramount merger sparks concern among movie theater owners
Paramount Global, the company behind "Top Gun" and Nickelodeon, agreed to merge with David Ellison's Skydance.
More consolidation, more problems — that’s the latest fear gripping the theatrical industry.
After a monthslong negotiation process, Paramount and Skydance have struck a merger agreement. While the proposed union has been touted as perfect match by those involved, Hollywood’s cinema operators have their concerns.
Namely, that continued consolidation in the industry will exacerbate production woes that have led to fewer film releases in recent years.
“A merger that results in fewer movies being produced will not only hurt consumers and result in less revenue, but negatively impact people who work in all sectors of this great industry — creative, distribution and exhibition,” Michael O’Leary, president and CEO of the National Association of Theatre Owners, or NATO, said in a statement Monday.
Paramount and Skydance have long been production partners, co-financing and distributing films from the Mission: Impossible, Star Trek, Terminator and Transformers franchises, among others.
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