Paramount Takes Over Lease of Bay Theater in Pacific Palisades

Skydance-owned Paramount Pictures 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. The theater is located in Palisades Village, a shopping center owned by Rick Caruso’s firm, Caruso.

Reopening Plans and Operations

Paramount plans to upgrade the theater with state-of-the-art projection systems and in-seat food and drink service, according to Caruso. The venue will be operated by The Lot, a La Jolla-based luxury dine-in theater chain with four locations in California. Paramount intends to show first-run theatrical movies from all studios, alongside nostalgic classics and curated events.

The theater is expected to reopen later this year, Caruso said. A specific date will be announced in the coming weeks, according to a press release from the companies.

Community and Industry Context

Rick Caruso, founder and executive chairman of Caruso, described the reopening as a significant milestone for the area. “The comeback of this movie theater is a great signal for all of L.A.,” Caruso said. “Los Angeles is resilient, and we’re going to show the country that Los Angeles can bounce back from a terrible, terrible disaster, and the comeback is going to be much greater than the setback.”

David Ellison, chief executive of Skydance, emphasized the community aspect of the project. “Together with Caruso, we are proud to help bring the Bay back to life as a place for the Pacific Palisades community to gather around the shared experience of cinema,” Ellison said in a statement. “This theater has always meant more than movies alone — it’s woven into the fabric of this neighborhood, and helping restore it is a privilege.”

Adolfo Fastlicht, founder and chief executive of The Lot, stated, “Through our curated offering and dedicated hospitality, we look forward to welcoming the Pacific Palisades community back to the movies, the way they were intended to be shared.”

Background and Lease Details

The Bay Theater was previously leased by Netflix, which took it over in 2021. Netflix used the space to host special events, screen classic films, and showcase its own original theatrical movies. Caruso described Netflix and its Chief Executive Ted Sarandos as “incredible stewards” of the theater.

Caruso declined to share the specific terms of Paramount’s lease agreement, stating only that it was long-term. Paramount declined to comment on the size of its investment in the theater. The announcement follows Paramount’s completion of its acquisition of Warner Bros. Discovery, a deal that resulted in the newly combined company taking the name Skydance.

Why it matters

The reopening of the Bay Theater represents a key step in the recovery of Pacific Palisades following the January 2025 fires. Palisades Village reopened in August after more than $100 million in renovations. The move also highlights Paramount’s continued commitment to theatrical releases, a stance Ellison has reiterated at industry events such as CinemaCon. While studios were barred from owning theaters for decades under the Paramount consent decrees, those restrictions were terminated by a federal judge in 2020, allowing for arrangements like this lease.

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Sources

• latimes.com: Paramount takes over Netflix’s Bay Theater in Pacific Palisades, plans reopening - Los Angeles Times
• yahoo.com: Paramount, Caruso to Reopen the Bay Theater in Palisades Village

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.