If you’re David Ellison, you need all the help you can get right now. Already up to his neck in court battles, he has reportedly had to postpone the Paramount–Warner Bros. Discovery merger—at least until the courts rule on the multiple lawsuits challenging the deal.
The real problem is that the merger cannot be delayed beyond September 30 without triggering a “ticking fee” of roughly $6.8 million per day, payable to Warner Bros. Discovery shareholders. Is Ellison really prepared to absorb that cost? According to a Bloomberg report, if the deal ultimately falls apart, Paramount/Skydance could be required to pay Warner Bros. Discovery shareholders $7 billion for their time and trouble. Yikes.
So, what’s a desperate Ellison to do? How about calling on a couple of his friends—two of Hollywood’s most powerful players—to help him out?
Yesterday, Endeavor CEO Ari Emanuel published an op-ed in The Wall Street Journal titled, “The Paramount–Warner Merger Could Save Hollywood,” offering his full-throated support for Ellison. I’ll save you the read—it’s mostly a gush fest, arguing that Ellison might just be the messiah Hollywood needs right now.
Today, AMC CEO Adam Aron has published a Variety op-ed fully endorsing the proposed Warner Bros.-Paramount merger. He argues that combining the companies would strengthen Hollywood by creating a studio with enough power to compete against giant technology companies, like YouTube, that increasingly dominate entertainment.
He calls the merger “a step forward that should be welcomed and celebrated,” emphasizing that the transaction has already received regulatory approval in dozens of jurisdictions. Aron warns that legal challenges by a the coalition of state attorneys generals threaten to derail the industry’s momentum just as theatrical moviegoing is recovering.
Aron also rejects the AG lawsuit argument that blocking the merger would protect theater chains like AMC. His response is blunt: “Well thanks, but no thanks. Their complaint simply gets the economics of our business backwards.”
In his view, the greater danger is not a stronger studio but an inadequate pipeline of movies. As he puts it, “A weak slate is a much greater threat to us than a strong studio.” More films, longer theatrical exclusivity, and stronger marketing drive attendance.
To bolster his case, Aron cites commitments from David Ellison. According to Aron, Paramount has pledged, in ink and paper, that a merged Paramount-Warner Bros. would release “at least 30 theatrical films annually,” each with a “minimum 45-day premium video-on-demand window and a minimum 90-day subscription streaming window following theatrical exclusivity.” He describes these as “specific and measurable commitments.”
The op-ed concludes by arguing that competition should be measured by the number and quality of movies reaching theaters rather than simply by the number of studio owners. Aron contends that audiences have clearly signaled they want “more movies, movies exclusively shown in theaters and better movies,” and that a stronger combined Paramount-Warner Bros. would help deliver exactly that.
He closes by calling approval of the merger “a big step in the right direction,” declaring that AMC, as the world’s largest movie theater chain, is “a full-throated supporter” of the deal.