Writers Guild sues to block $111 billion Paramount-Warner Bros. Discovery merger
The Writers Guild of America filed an antitrust lawsuit in California seeking to stop Paramount’s proposed acquisition of Warner Bros. Discovery, arguing the deal would harm writers’ wages and job opportunities.
The Writers Guild of America West and East lodged a lawsuit in the U.S. District Court for the Northern District of California on Tuesday, asking a judge to block Paramount’s planned $111 billion purchase of Warner Bros. Discovery. The guild alleges the transaction would violate federal antitrust law and reduce competition in three writing-services markets: top-grossing films, episodic television and streaming series.
According to the complaint, a combined Paramount-Warner entity could lower writers’ pay, cut employment opportunities and diminish the quantity and variety of film and television output. The filing follows a separate antitrust suit by 12 Democratic state attorneys general, which also claims the merger would give the merged company excessive power in theatrical and basic-cable markets.
“If Paramount succeeds in buying Warner Bros., the merged firm will be the largest buyer of original film and television programming in the United States. This would eliminate competition in an already consolidated industry, threatening the livelihoods of entertainment workers and the creative diversity of TV and film,” said WGA West president Michele Mulroney.
Paramount responded that a larger company would expand development slates, increase the number of series and film greenlights, and preserve distinct studios, thereby creating more jobs and opportunities for writers. The studio also cited its commitment to release at least 30 movies a year with full 45-day windows and to continue commissioning work from independent producers.
WGA East president Tom Fontana warned that the merger would give the combined firm “tremendous power to suppress our wages, eliminate opportunities for emerging writers, cut jobs across the industry, and produce less programming.” The guild said it has been informing state attorneys general, federal legislators and regulatory agencies about the perceived risks and is represented by the law firms Shinder Cantor Lerner, Cuneo Gilbert Flannery & LaDuca, and Platkin LLP.