Hollywood theater owners are worried a Paramount-Skydance merger will usher in too much consolidation

More consolidation, more problems — that's the latest fear gripping the theatrical industry.

After a monthslong negotiation process, Paramount and Skydance have struck a merger agreement. While the proposed union has been touted as perfect match by those involved, Hollywood's cinema operators have their concerns.

Namely, that continued consolidation in the industry will exacerbate production woes that have led to fewer film releases in recent years.

"A merger that results in fewer movies being produced will not only hurt consumers and result in less revenue, but negatively impact people who work in all sectors of this great industry — creative, distribution and exhibition," Michael O'Leary, president and CEO of the National Association of Theatre Owners, or NATO, said in a statement Monday.

Paramount and Skydance have long been production partners, co-financing and distributing films from the Mission Impossible, Star Trek, Terminator and Transformers franchises, among others.

Skydance founder David Ellison during an investor call Monday touted that Paramount and Skydance have produced 30 feature films together. He said the deal would "unify the key rights to several of Paramount's most iconic franchises" and "allow us to expand franchise management."

However, each company has other producing partners, and it is unclear how this merger could affect production going forward.

"The entire industry will be closely following how Skydance and Paramount's release slate evolves in the coming years," said Shawn Robbins, founder and owner of Box Office Theory. "I think it's fair to say there's cautious optimism right now. It's a different situation than if another major studio had stepped in to acquire Paramount, which would have more