Hollywood Unions Urge Faster Resolution of Paramount-Warner Bros. Merger 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 quicker resolution of the antitrust case surrounding the proposed Paramount-Warner Bros. Discovery merger. The unions, which together represent roughly 200,000 film and television workers in the United States and Canada, warned that the current trial schedule, set for March 2027, could further harm an industry already facing a more than 40% decline in production in California.

"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 said.

The unions highlighted that uncertainty over the deal has already led to productions being paused or cancelled, reducing employment opportunities for their members. They proposed a series of enforceable conditions intended to preserve competition, including keeping Paramount and Warner Bros. Discovery’s motion-picture and television studios separate, guaranteeing a minimum number of theatrical releases, and maintaining commitments to produce and license content in the United States.

The letter follows reports that Ellison warned he would begin relocating Paramount out of California on October 1 if the case is not settled, a date that would trigger a $7 million-per-day fee stipulated in the merger agreement. California Governor Gavin Newsom and gubernatorial candidate Xavier Becerra have expressed interest in reaching a settlement, while Bonta described Ellison’s relocation threat as an attempt to pressure the state.

Other Hollywood unions, including the Writers Guild of America, have also voiced opposition to the merger, and SAG-AFTRA has indicated it would support the deal only with specific production guarantees.