Writers Guild of America Challenges Paramount-Warner Merger
The Writers Guild of America (WGA) has filed a lawsuit to prevent Paramount’s proposed $81 billion acquisition of Warner Bros. Discovery. This legal action, initiated on Tuesday, argues that the merger would result in “specific harm” to writers in the film and television sectors across the United States.
The union, representing both the Writers Guild of America West and Writers Guild of America East, expressed concerns that this merger could diminish competition, potentially leading to reduced wages and fewer employment opportunities for writers. According to the filed complaint, the merger poses a threat to the “economic and creative health of the American entertainment industry.”
WGAE President Tom Fontana highlighted these concerns in a statement, noting, “This proposed combined entity would be the largest employer of writers, with tremendous power to suppress our wages, eliminate opportunities for emerging writers, cut jobs across the industry, and produce less programming.”
The merger would unite two of Hollywood’s remaining five legacy studios, combining Warner’s HBO Max and its extensive library, which includes popular content such as “Harry Potter” and CNN, with Paramount’s CBS, “Top Gun,” and its streaming platform, Paramount+.
The WGA’s complaint asserts that the merger breaches antitrust laws by reducing competition within three primary markets: episodic TV and streaming series writing, overall TV writing deals, and screenwriting for major theatrical films.
In response, Paramount, owned by Skydance, argued that the merger would “expand opportunities for writers, not shrink them.” The company emphasized its commitment to releasing at least 30 movies annually, retaining a 45-day theater-exclusive window, and continuing to collaborate with independent production firms while operating “two distinct film studios.”
“A stronger Hollywood only means something if it’s stronger for the writers who power it,” Paramount stated in its defense.
This legal move by the WGA follows a lawsuit filed by 12 states, led by California Attorney General Rob Bonta, a day earlier. This coalition contends that the merger would “extinguish competition” in Hollywood, reducing options for moviegoers and cable TV viewers nationwide. The coalition also sought a temporary restraining order to halt the merger, although Paramount dismissed the states’ claims as “wrong on both the facts and the law” and vowed a rigorous defense.
While the merger faces challenges in the U.S., it has received approvals from several other countries, including China, Canada, and Australia, along with the Trump administration. However, the European Union and the U.K. are still conducting regulatory reviews, with the U.K. potentially considering intervention.
Paramount and Warner aim to finalize the merger by the third quarter of this year, with a potential completion date as early as July 22. The merger, inclusive of debt, is valued at nearly $111 billion based on outstanding shares.
