AMC's Aron: 'Thanks, But No Thanks' to AG's Merger Block

AMC Theatres chief executive Adam Aron has thrown his considerable weight behind the proposed merger of Paramount Global and Warner Bros. Discovery, publicly dismissing efforts by a state attorney general to block the deal as misguided. Aron’s endorsement, delivered during a recent industry conference, marks the first high-profile support from a major exhibition chain for a consolidation that would reshape Hollywood’s studio landscape. He made clear that while regulators are eyeing antitrust concerns, his company sees a combined Paramount-Warner entity as a net positive for movie theaters, content production, and the broader theatrical ecosystem.

Why Aron Supports the Merger

Aron’s position is rooted in the practical realities of the exhibition business. With streaming services siphoning audiences and production costs skyrocketing, theater owners have watched the number of wide-release blockbusters shrink. A larger studio with Paramount’s franchise library - Mission: Impossible, Top Gun, Star Trek - and Warner Bros.’ DC superheroes, Harry Potter legacy, and Dune series could commit to a steadier flow of theatrical releases. Aron argued that the combined company would have the financial muscle to sustain a robust theatrical calendar, benefiting all exhibitors.

“We need fewer, stronger studios that can consistently deliver event movies on a global scale,” Aron said. “This merger accomplishes that. Blocking it would be a blow to the very theaters the attorney general claims to protect.” He specifically rejected the notion that the deal would harm competition, pointing to the continued presence of Disney, Universal, Sony, Netflix, Apple, and independent distributors. “Thanks, but no thanks to the state AG’s attempt to stop a merger that would actually help keep screens lit,” he added.

Aron also noted that AMC, as the world’s largest theater chain, relies on a steady pipeline of titles from major studios. In recent years, both Paramount and Warner Bros. have experimented with shortened theatrical windows and day-and-date streaming releases - practices that AMC has publicly opposed. A merged company, Aron speculated, might be more disciplined about protecting theatrical exclusivity, given its larger investment in content and exhibition partnerships.

The Attorney General’s Opposition

The pushback Aron criticized comes from the office of New York State Attorney General Letitia James, who has signaled that she plans to challenge the merger on antitrust grounds. James has argued that combining two of the “Big Five” legacy studios would reduce competition in film production, distribution, and exhibition, leading to fewer choices for consumers and higher ticket prices. Her office filed a preliminary injunction request last month, citing potential harm to regional theaters and independent filmmakers.

Aron countered that such concerns are outdated. “The competitive landscape today is not 1995,” he said. “Disney alone controls over 30 percent of the domestic box office. Netflix and Amazon spend billions on original films. Apple is making Oscars contenders. Blocking a merger between two studios that together hold maybe 25 percent of the market doesn’t serve anyone.” He further argued that a combined Paramount-Warner would be better able to negotiate with exhibitors on equitable terms, rather than playing off theater chains against each other.

Legal experts are divided. Some antitrust scholars believe the merger would pass regulatory muster if the companies agree to divest certain overlapping assets, such as cable networks or international distribution arms. Others worry that the deal would trigger a new wave of consolidation, leaving only three or four major Hollywood studios. The Justice Department has yet to take a formal position, and the Federal Trade Commission is reviewing the merger under the Biden administration’s stricter antitrust guidelines.

Exhibition Industry Reaction

Aron’s comments have sparked debate among theater owners and film executives. While some independent cinema operators share the attorney general’s wariness, fearing a loss of bargaining power, many multiplex chains quietly support the merger. The National Association of Theatre Owners has not taken a public stance, but its members have privately noted that a stronger studio partner could help offset declining attendance numbers.

AMC itself has been aggressively diversifying its revenue streams, from premium large-format screens to in-theater dining and event cinema. A larger, more stable studio supplier would give Aron more leverage in negotiating revenue-sharing agreements and exclusive release windows. His blunt rejection of the attorney general’s efforts reflects a broader industry frustration with what many see as regulatory overreach in an era of digital disruption.

The merger’s fate now likely rests on upcoming court hearings and potential settlement talks. Aron’s public advocacy could sway opinion among shareholders and policymakers, though it remains to be seen whether his “thanks, but no thanks” message resonates beyond the exhibition sector. For now, the AMC chief has drawn a clear line: the future of moviegoing depends on letting studios join forces, not keeping them apart.

Source: Variety