I'm going to raise this interesting question

[Argus Sventon]

Okay, I'm going to pose this question: Suppose AOL-TW decided to re-release the Popeye two-reelers to theaters, restored of course?

It's not going to happen, but I'm raising this point for a reason.

Paramount sold AAP the home movie and television rights to the Popeye cartoons, but retained the theatrical rights. So does Paramount still control the theatrical rights to the Popeye cartoons?

[Jerry Beck]

Paramount retained the theatrical rights to the POPEYE cartoons for ten years (1957 to 1967), then the theatrical rights reverted to A.A.P. (which in 1967 had been sold to United Artists) - Thus, AOL/TIME/WARNER has the theatrical rights.
Paramount actively re-released Popeye cartoons to theaters between 1957 & 1967 (selling them as "Popeye Champions"). When Gulf+Western bought Paramount in 1967, they wiped out the short subjects department.

Paramount still has the theatrical rights to all its other cartoons 1950-1967 (including all the "Harveytoons").