Paramount Pictures, now owned by Skydance, has taken over the lease for the Bay Theater in Pacific Palisades and intends to reopen the cinema, which has been closed since the January 2025 Palisades fire destroyed much of the surrounding neighborhood.
What happened to the theater
The Bay Theater was operated by Netflix as a screening venue and special-events space. Netflix had used the location for premieres, press screenings and industry events. When the Palisades fire swept through the area in January 2025, the theater was damaged and subsequently closed. Netflix continued paying the lease through 2025 while the building’s future was uncertain.
Under the long-term lease agreement announced October 13, 2026, Paramount Pictures will renovate and operate the venue. The company plans to upgrade the theater with state-of-the-art projection systems and reopen it as a first-run cinema and events space.
Why Paramount wants a theater
The Bay Theater gives Paramount a physical presence in the Los Angeles market for premieres, press screenings and awards-season events. Since the Skydance-Paramount merger closed in October 2026, the combined company has been investing in theatrical exhibition infrastructure as a complement to its streaming operations.
The move also signals that Paramount intends to remain a major theatrical distributor. Studios that rely entirely on streaming have limited options for the kind of in-person events that generate press coverage and industry goodwill. Owning a venue, even a small one, provides a home base for those activities.
What reopening means for Pacific Palisades
The Bay Theater is one of the first major commercial reopenings in the Pacific Palisades business district since the fire. Its return could help draw foot traffic to other rebuilt businesses and serve as a marker of the neighborhood’s recovery. A date for the grand reopening has not been announced.
For related coverage, see our analysis of Paramount Skydance’s plan to unify HBO Max and Paramount+ and the 2026 streaming device price increases.
Sources
- Los Angeles Times, “Paramount takes over Netflix’s Bay Theater in Pacific Palisades, plans reopening” (October 13, 2026): https://www.latimes.com/entertainment-arts/business/story/2026-10-13/paramount-bay-theater-pacific-palisades-reopen-netflix-caruso
