DGA and IATSE Call on California Attorney General to Resolve Paramount Antitrust Dispute

The Directors Guild of America (DGA) and the International Alliance of Theatrical Stage Employees (IATSE) sent a joint letter to California Attorney General Rob Bonta and Paramount-Skydance CEO David Ellison urging a settlement of the antitrust lawsuit that challenges Paramount’s proposed merger with Warner Bros. Discovery. The unions said the prolonged uncertainty surrounding the deal is detrimental to their members and to the industry at large.

"While we have been consistent in our view that mergers, such as this one, historically offer few benefits to workers, we are also particularly concerned about the negative impact a delay in the decision regarding the proposed merger will have on our members and the industry at large," the letter read.

The appeal contrasts with the Writers Guild of America, which is pursuing its own antitrust action to block the merger. The case has also split theater operators, with Regal Cinemas and AMC Theatres supporting the deal, while the trade group Cinema United opposes it.

Bonta, leading a coalition of 12 states, filed the lawsuit in July, arguing that the merger would create illegal concentration in basic cable and theatrical distribution markets. A federal judge issued a temporary restraining order and set a March 2 trial date, later than Paramount preferred.

The unions, represented by DGA national executive director Russell Hollander and IATSE international president Matthew Loeb, said the March 2 trial date further harms an already struggling industry. They noted productions have been paused or canceled, reducing employment opportunities for guild members.

The letter proposes conditions that Paramount has already agreed to, such as keeping the two studios separate and each producing at least 15 films annually, and maintaining current licensing rates for content from outside producers. If a settlement cannot be reached, the unions urged both parties to consider an earlier trial date, though the states have requested additional time to depose Paramount executives and gather evidence.