Additional Coverage:
- Hollywood unions split: DGA, IATSE seek settlement while WGA fights to block Paramount-Warner merger (latimes.com)
Two major Hollywood unions are urging a resolution in the ongoing antitrust battle over the proposed Paramount-Warner Bros. merger, warning that prolonged uncertainty is harming the industry’s fragile production economy.
The Directors Guild of America (DGA) and the International Alliance of Theatrical Stage Employees (IATSE), representing a combined membership of around 200,000 industry professionals, sent a joint letter to Paramount Skydance Chairman David Ellison and California Attorney General Rob Bonta. The letter calls for a settlement that safeguards jobs and keeps productions moving amid delays attributed to the merger dispute.
The merger, which would unite major studios and networks including Warner Bros., Paramount, HBO, CBS, CNN, HGTV, and Comedy Central, has faced intense scrutiny from regulators. Bonta’s office, supported by the Writers Guild of America and other state attorneys general, argues that the $111 billion deal threatens competition and could lead to significant job losses and reduced wages.
Paramount executives have expressed frustration over the stalled decision-making, as some projects reportedly remain on hold. The legal battle is scheduled for trial in an Oakland court next spring, with both sides under pressure to find common ground.
In their three-page letter, DGA Executive Director Russell Hollander and IATSE President Matthew D. Loeb acknowledged their reservations about the merger but emphasized the urgent need to protect the industry’s workforce. They outlined nine conditions for any settlement, including commitments to maintain studio operations in Hollywood, preserve independent production units for both studios, and continue producing a minimum number of films annually.
The unions also called for a 45-day theatrical window to support cinema chains’ recovery and insisted that HBO remain available as a linear channel on third-party platforms like Amazon. Additionally, they urged a firm commitment from Ellison to keep film and television production in the United States at levels consistent with recent years, excluding pandemic and strike-affected periods.
Some of these demands may pose challenges for Paramount, especially as the company considers cost-cutting measures to manage the substantial $81 billion debt required to complete the acquisition. Reports suggest Ellison has contemplated relocating Paramount’s headquarters from Hollywood to another state, potentially Tennessee, to secure financial incentives.
While the unions stopped short of urging Bonta to abandon the lawsuit, they emphasized that any resolution must be binding and enforceable. They also requested that if a settlement cannot be reached, the legal trial be expedited, noting the current March 2 court date.
As political figures weigh in-with California’s Democratic gubernatorial candidate Xavier Becerra favoring settlement talks, and Republican Steve Hilton criticizing the lawsuit as politically motivated-the industry watches closely. Governor Gavin Newsom has remained neutral as he prepares to leave office next year.
The outcome of this high-stakes dispute will have significant implications for Hollywood’s production landscape, labor market, and the future of two of its most iconic studios.