The Lionsgate CEO, Jon Feltheimer, has come out in support of the Paramount-WBD merger, arguing that uncertainty is detrimental to the industry. This stance is significant as it adds to the growing chorus of voices in favor of the deal, despite the ongoing legal challenges. Feltheimer's comments come as a response to a Wall Street analyst's question during Lionsgate's quarterly earnings call, where he emphasized the importance of certainty in the industry.
Feltheimer's personal endorsement of Paramount CEO David Ellison is notable, given their history of working together on the series 'Manhattan'. He expressed confidence in Ellison's commitment to investing heavily in content, whether it's a 30-film slate or a bolstered Paramount+. This sentiment is shared by TKO CEO Ari Emanuel and the CEOs of major theater chains AMC and Regal, who have also publicly supported the deal.
However, the deal has faced opposition from various quarters. A-listers have signed an anti-merger petition, citing concerns about potential layoffs and the sensitivity surrounding the combination of two major studios. The Writers Guild of America and 12 state attorneys general have also filed an antitrust lawsuit, which has led to a full trial scheduled for next March. This delay has added to the industry's angst, given the rapid changes in the marketplace due to tech and audience shifts.
Despite the challenges, Feltheimer sees potential benefits for Lionsgate. He believes that a better-financed and competitive Paramount+ would be advantageous for original programming and library sales. He also highlights the positive impact of a larger movie slate in the marketplace, suggesting that the rising tide of competition can lift all boats.
In conclusion, Feltheimer's support for the Paramount-WBD merger is a significant development, especially given his industry expertise and Lionsgate's role as a supplier to major streamers. While the deal faces legal hurdles, Feltheimer's comments suggest a positive outlook for the industry, emphasizing the importance of certainty and the potential benefits of a larger, more competitive streaming landscape.
