Two of Hollywood’s oldest studios may be consolidating into one after a monthslong bidding war. Paramount emerged as the apparent victor in the fight to acquire Warner Bros., which Netflix backed away from due to its lack of financial attractiveness. The deal is valued at around $111 billion, including debt. Paramount chairman and CEO David Ellison wants to grow their combined slate to more than 30 movies a year while keeping both studios’ operations separate.
The acquisition raises concerns about the future of Hollywood, particularly for movie theaters. Cinema United, which represents movie theaters, worries that consolidation will lead to fewer films being made and a loss in exhibition and box office revenue. Despite this, Paramount promises to support filmmakers making “actual” content, as seen in Warner Bros.’ recent success with major blockbusters.
The deal also leaves unclear what will happen to HBO Max and Paramount+ and the studio lots where productions are based. Regulators have already initiated reviews of the acquisition, which is expected to be a significant test of their powers in regulating Hollywood’s growing concentration of power.
Source: https://apnews.com/article/warner-bros-paramount-deal-explained-7c05a7455e3cef11875dd53784dbf9d2