Bonta forces Paramount-Warner Bros. Discovery to hand over 36 films in 2027

The merger of Paramount Pictures and Warner Bros. Discovery has been cleared by California Attorney General Rob Bonta with a key condition: the new studio must already have 36 theatrical releases scheduled for 2027.

This requirement reflects the California Attorney General’s broader antitrust strategy to ensure that the merged studio does not stifle competition.

Those 36 titles were slated before the studios agreed to combine, so the number is considered “organic.” For 2028, the combined slate contains 25 films, but the settlement requires 30 releases in the first two years, meaning five additional movies must be added that year.

The shortfall underscores the pressure on Paramount to secure additional projects before the merger closes.

Beyond 2029, regulators will demand an average of 32 theatrical releases . Failure to meet any quarterly quota could trigger financial penalties and jeopardize Paramount’s stake in Miramax. In addition, missing the annual theatrical release quota could cost Paramount its 49% investment in Miramax.

## Background & Context

The combined entity already posted $838.3 million at the U.S. domestic box office from January through September, an 11% share of the market and ranking it fourth behind Universal, Sony and Disney. Global totals for the two studios were not available at the time of the report.

Rumors that the merged company would have to operate entirely separately proved unfounded. Early reports suggest that one or two executives could oversee overall theatrical strategy while another pair might head each brand’s individual slate, a structure still under development.

Duplication of marketing and distribution teams is a concern, especially when release dates clash. The schedule shows several weekends where a Warner Bros. film opens alongside a Paramount picture, forcing counterprogramming decisions that are unprecedented for two major labels to spend on competing releases simultaneously.

High‑profile overlaps include the June 30, 2028 weekend where Paramount’s Call of Duty faces DC’s Dynamic Duo, and the July 2027 cluster featuring James Gunn’s Man of Tomorrow, Crawl 2, Ocean’s Prequel and A Quiet Place III.

## What People Are Saying

“We basically ensure the status quo competition with negotiations (remaining) separately. It’s as if the companies never merged.” The AG emphasized that the studios must maintain independent negotiations for cable and theatrical deals.

He added that the studios cannot bundle cable assets or use them together to reduce competition, and that theatrical negotiations must remain separate.

The AG also explained how the settlement addresses reduced competition: “Usually, when you see [a deal that] reduces competition, you see people paying more for less. So you see less output, less quality. And you see higher prices.

We address that by making sure that the fees remain flat, for the three years between the merch company and the exhibitors, the theaters.

And then the requirement, this incredible, massive requirement for production output, cures for the less part, instead of paying more for less.” By keeping fees flat and boosting production, the settlement aims to keep consumers’ ticket prices stable while preventing a concentration of creative output.

Regarding leadership continuity, Warner Bros. Motion Picture chairs Michael De Luca and Pamela Abdy told reporters earlier this year that “We’re hoping to stay the course.” They have a four‑year extension on their contracts through 2030, so the prospect of them moving to another studio remains uncertain.

Their continued leadership could provide continuity for ongoing projects and relationships with filmmakers.

## What Happens Next

In a memo to Paramount staff, CEO David Ellison said the merger would likely close “in approximately two weeks.” The precise structure of the combined entity is still in flux, with executives from both sides expected to collaborate on theatrical strategy and brand‑specific decisions.

Ellison’s plan includes appointing senior leaders from both Paramount and Warner Bros. to oversee the merged studio’s creative pipeline.

The release schedule from October 2026 through December 2028 lists dozens of films, many sharing dates. For example, Oct 16 has Paramount’s Street Fighter and Warner Bros.’ The Devils opening together, while June 30 pits Call of Duty against Dynamic Duo. To meet the 2028 quota, Paramount would need to add at least five new titles.

If any quarterly or yearly target is not met, California law requires a $30 million payment , and “For each film that they fail to make…$30M is paid…but 90% of it goes to workers,” Bonta said. The added titles must not only satisfy legal obligations but also maintain audience interest amid a crowded summer lineup.

The studios’ strategic plan remains in development. While the combined company will operate as a single entity, the AG has stipulated that negotiations with cable and theatrical partners must appear as though the companies never merged, preserving competition in the marketplace.

Industry observers will track how the AG’s requirements influence release scheduling and marketing strategies in the coming months.

The merger’s success will hinge on Paramount and Warner Bros. Discovery’s ability to meet stringent production targets while navigating overlapping releases and regulatory safeguards.

As the studios forge their new structure, the industry will watch closely to see whether the promised slate can sustain both creative ambition and antitrust compliance.