Los Angeles County report warns job losses from Paramount-Warner merger

Los Angeles County’s Department of Economic Opportunity released a study estimating that the $111 billion merger between Paramount Skydance and Warner Bros. Discovery could put roughly 2,500 jobs in the county and 6,000 worldwide at risk. The analysis cites overlapping corporate, technology and real-estate positions and an $82 billion debt load that the combined company may seek to trim by about $6 billion through consolidations.

"The findings reinforce what workers, employers, and small businesses have been telling us for years: our entertainment economy remains in a fragile recovery period," said Kelly LoBianco, department director.

The report also notes that local film production could decline, with only one of 19 films released last year by the two studios primarily shot in California. An economist from CVL Economics added that even if the merged entity expands its output, Los Angeles is not well positioned to capture much of that increase.

County officials recommended that the new company be approached for commitments to local hiring and that the region expand tax credits or streamline permitting to encourage more productions. The analysis comes amid broader challenges for California’s film industry, including the pandemic, recent labor strikes and wildfires. Federal antitrust regulators have approved the merger, while several states, including California and New York, are considering legal action to block it.

A Paramount spokesperson said the combined company would have the scale and resources needed to compete in the global media market and to invest in content, technology and jobs.