Hollywood unions urge settlement in Paramount-Warner Bros. antitrust case

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 pending antitrust case over the proposed Paramount-Warner Bros. Discovery merger. The unions argue that the uncertainty surrounding the merger is already causing productions to be delayed or canceled, affecting roughly 200,000 entertainment workers in the Los Angeles area.

“We write to raise concerns about the potential for a prolonged timetable for the litigation… and express to you the importance that you engage directly with each other to negotiate a resolution that ameliorates the anti-competitive aspects of the proposed merger,” the letter said.

The letter also requests that, if a settlement cannot be reached, the parties move the trial date earlier than the scheduled March 2027, to limit further disruption. While acknowledging that past media mergers have offered “few benefits” to workers, the unions contend that enforceable conditions could mitigate their concerns.

Proposed safeguards include keeping Paramount and Warner Bros. as separate film and television studios, maintaining both as independent sellers in the marketplace, committing to produce U.S. projects at least at the historical average rate, and keeping Paramount’s headquarters in Los Angeles.

The DGA and IATSE positions differ from those of the Writers Guild of America, which has sued to block the $111 billion merger, and SAG-AFTRA, which opposes the deal without enforceable protections. The Teamsters previously urged the Justice Department to block the transaction unless worker safeguards were included.

“Our goal, with respect to the proposed merger, has always been to achieve an outcome that ensures a vibrant, competitive marketplace for the production, distribution, and licensing of film and television programming that serves the interests of consumers and filmmakers alike,” the union leaders said.

The unions hope that a binding agreement with specific conditions will preserve jobs and maintain a competitive industry environment.