Lionsgate CEO Jon Feltheimer has backed the stalled Paramount-Warner Bros. Discovery merger, saying the deal should close as soon as possible because prolonged uncertainty could hurt the entertainment industry.
Speaking during Lionsgate’s quarterly earnings call on Thursday, Feltheimer said the company could benefit from a stronger Paramount and Warner Bros. Discovery, even though Lionsgate competes with both companies in areas such as theatrical releases.
“Uncertainty is the worst thing for our business, and uncertainty and delay are not good for anybody,” Feltheimer said.
Feltheimer Praises David Ellison
Feltheimer also praised Paramount Skydance CEO David Ellison, recalling Lionsgate’s previous work with him on the television series “Manhattan.”
“We know David Ellison well. We did his first series, ‘Manhattan,’ some years ago. I can tell you that I was super impressed with him. He loves content.”
The Lionsgate chief said greater investment in content and a stronger Paramount+ could create more business opportunities for Lionsgate.
“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+. I would say for us… a better-financed streamer, a competitive streamer, will be better for us, better for us in terms of original programming, better for us in terms of selling library. And so that part of it, I think, is a real positive for us.”
Feltheimer also revealed that Lionsgate has already sold Paramount a new television show, although he did not provide details.
“We hadn’t been doing that much with Paramount. We hadn’t been doing that much with HBO,” he told analysts. “So I’m already seeing signs of it. I’m already talking to them about potentially co-financing feature films. That would be good for us, and that would be good for the industry.”
Paramount-Warner Bros. Deal Remains on Hold
The Paramount-Warner Bros. merger remains frozen after 12 Democratic state attorneys general and the Writers Guild of America sued to block the deal.
Unless the case is settled, the merger cannot close until after the March 2027 antitrust trial or June 1, 2027, whichever comes first.
The U.K. Competition and Markets Authority has separately cleared the merger, removing a major regulatory hurdle.
Meanwhile, Lionsgate reported a 48% rise in overall revenue for the June quarter. Its movie division posted $105 million in income, helped by the success of “Michael.”
The Michael Jackson biopic became Lionsgate’s biggest movie at the box office and the first biopic to surpass $1 billion in theatrical revenue.
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