Two major Hollywood unions have urged a resolution to the ongoing legal dispute between Paramount and California Attorney General Rob Bonta concerning Paramount's proposed merger with Warner Brothers Discovery.
The Director's Guild of America (DGA) and the International Alliance of Theatrical Stage Employees (IATSE), which represents below-the-line crew members, sent a joint letter to Bonta and Paramount CEO David Ellison. Their primary message is a plea for both parties to "engage directly with each other to negotiate a resolution that ameliorates the anti-competitive aspects of the proposed merger."
Unions voice concerns over stalled deal The unions stated that a protracted legal battle over the merger would negatively affect their members and the broader industry. They emphasized that while mergers historically offer few benefits to workers, the negative impact of a delay in the merger decision is a significant concern.
"We further believe the benefits and detriments of the proposed merger should be measured against the alternative outcomes if it is not approved, especially if the anti-competitive impacts of the proposed merger can be mitigated by a binding agreement," the letter, signed by DGA executive director Russell Hollander and IATSE president Matthew Loeb, reads.
If a settlement cannot be reached, the unions requested that the trial date, currently set for next March, be moved up. Paramount CEO David Ellison had initially pushed for a November start date for the trial.
A key condition suggested by the DGA and IATSE is a commitment that Paramount would remain in Los Angeles. This comes amid reports that Ellison is considering moving the studio out of California due to Bonta's antitrust lawsuit.
While the letter is not an endorsement of the merger, it highlights the unions' apprehension regarding lengthy litigation that could potentially halt operations for at least one studio for nearly a year. The DGA and IATSE's stance diverges from that of the Writers Guild of America (WGA) and SAG-AFTRA. The WGA has filed its own lawsuit to block the deal, a legal challenge that is proceeding concurrently with the state's case. Last month, SAG-AFTRA passed a resolution in support of the WGA's lawsuit.