AMC Entertainment’s stock has jumped 64% so far this month, marking its best performance since the 2021 meme-stock rally, after CEO Adam Aron voiced support for Paramount Skydance’s proposed acquisition of Warner Bros. Discovery.
Aron stated that commitments from Paramount to release at least 30 films annually across both studios and maintain a 45-day exclusive theatrical window would represent a ‘significant improvement’ for cinema exhibitors. He made these remarks at CinemaCon, where he clarified that AMC is not attempting to influence regulators reviewing the transaction but wanted to express the company’s favorable view of the deal.
The proposed Paramount-Warner deal and Aron’s endorsement are seen as positive developments for the movie theater industry, which has faced challenges recovering from pandemic-era disruptions. Aron emphasized that Paramount’s promises of increased theatrical releases and longer exclusivity windows could help boost attendance and revenue for AMC and other exhibitors.
Aron also praised the leadership of Warner Bros. And its promising film slate, noting his confidence in David Ellison’s background as a movie producer on films like ‘Top Gun: Maverick’ as an indicator of his commitment to the theatrical experience.
Despite opposition from some filmmakers and industry figures who signed a petition arguing the merger would lead to fewer opportunities for creators, higher costs, and less choice for audiences, Aron maintained his support, stating It’s time for AMC to make its favorable view known regarding Paramount’s desire to acquire Warner Bros.