Lionsgate CEO Jon Feltheimer went to bat Thursday for Paramount CEO David Ellison and the company’s hung-up merger with Warner Bros. Discovery.
“Uncertainty is the worst thing for our business, and uncertainty and delay is not good for anybody,” the exec replied to a Wall Street analyst wondering about his deal stance during Lionsgate’s quarterly earnings call. “I’m in favor of this transaction, but most importantly, I’m in favor of certainty and I’m getting all of the delay out of it.”
The $110 billion mega-deal breezed through regulatory review before hitting a major barrier in July, when the Writers Guild of America and 12 state attorneys general filed an antitrust lawsuit. Following a judge’s initial rulings siding with the plaintiffs, a full trial has now been scheduled for next March. The months-long delay, barring a settlement, has added to industry angst given how rapidly the marketplace keeps changing due to tech and audience shifts.
Feltheimer joins TKO CEO Ari Emanuel and the CEOs of major theater chains AMC and Regal in giving the deal his public support. Fears about potential layoffs and sensitivity around combining two major studios have kept the merger a divisive topic, with a number of A-listers adding their names to an anti-merger petition that has drawn more than 5,000 signatures.
The Lionsgate exec added a personal endorsement of Ellison along with addressing the importance of the deal on a broader industry level.
“We know David Ellison well,” he said. “We did his first series, Manhattan, some years ago, I can tell you that I was super impressed with him. He loves content. I have no reason not to believe that he will be investing very heavily in content, whether it’s a 30-film slate or whether it’s at a bolstered Paramount+.”
Feltheimer said he has held recent discussions with the companies about potential film co-financing opportunities. Also, as a supplier to Netflix and other major streamers, he sees the potential boost to Paramount+ as a draw.
“For us, a better-financed streamer, a competitive streamer, would be better for us, better for us in terms of original programming, better for us in terms of selling library,” he said.
Doing more business with a bulked-up Paramount “would be good for us, and would be good for the industry,” Feltheimer added. “Overall, the more movies that are in the marketplace – while it’s competitive – is good. As you know, the rising tide lifts all boats.”
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