Lionsgate CEO Jon Feltheimer came out publicly in favor of the stalled Paramount-Warner Bros. Discovery merger Thursday, calling delay the worst possible outcome for the entertainment industry.
Feltheimer spoke during Lionsgate's quarterly earnings call. He said uncertainty is damaging across the board and urged the deal to close as quickly as possible.
"Uncertainty is the worst thing for our business, and uncertainty and delay is not good for anybody," Feltheimer said. "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."
According to Variety, Feltheimer continued: "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 disclosed that Lionsgate has already begun doing business with one of the merger partners. He said Lionsgate has "already sold [Paramount] a new television show," though he did not provide details. He added that discussions about co-financing feature films are also underway.
"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. And I would say, overall, the more movies that are in the marketplace, while it's competitive, it's good as the rising tide moves all boats up."
The Paramount-Warner Bros. deal remains blocked after 12 Democratic state attorneys general and the Writers Guild of America sued to block the merger. Unless a settlement is reached, the merger will not close until after an antitrust trial set to begin in March 2027, or June 1, 2027, whichever comes first.
There was at least one piece of good news for the deal this week. The U.K.'s Competition and Markets Authority cleared the merger, which Deadline noted was the last major regulatory approval needed outside the United States. Britain's approval brings the total number of jurisdictions that have greenlit the deal to 60, including the European Union. Culture secretary Lisa Nandy had initially threatened to intervene but waved the merger through after receiving assurances from Ellison, including commitments to preserve the editorial independence of 5 News and kids channels.
On the financial side, Lionsgate reported strong quarterly numbers. Overall revenue jumped 48% for the June quarter, and its movie segment posted income of $105 million. The results were driven largely by Michael, the Michael Jackson biopic, which became the studio's biggest box office film to date and the first biopic to top $1 billion in theatrical release. A sequel is in development, expected in late 2027 or early 2028. Lionsgate's net loss attributable to shareholders was $28.8 million, an improvement over a net loss of $94 million in the same period a year earlier.
