A growing chorus of Hollywood labor unions and industry figures are urging for an out-of-court settlement in the legal battle over Paramount's potential acquisition of Warner Bros. Discovery, expressing increasing wariness about the prospect of a lengthy antitrust trial. The shift in sentiment comes as California Attorney General Rob Bonta faces mounting pressure to resolve the dispute, which has cast a shadow of uncertainty over a significant portion of the entertainment industry.
While the deal initially faced opposition from many Hollywood professionals, including prominent figures like actors Robert De Niro and Ben Stiller, and directors like Denis Villeneuve, the setting of a March 2027 trial date has amplified concerns about the prolonged legal process. This has led some within Bonta's own party to advocate for a settlement.
Recent endorsements of the deal from key industry leaders, such as Regal Cinemas CEO Eduardo Acuna and Lionsgate CEO Jon Feltheimer, signify a growing bloc in favor of the merger. These endorsements, combined with a potential move of Paramount operations out of California, have intensified calls for a resolution. California gubernatorial frontrunner Xavier Becerra has publicly advocated for a settlement, a sentiment reportedly shared by Governor Gavin Newsom, who has expressed reservations about the antitrust case.
Two major labor organizations, the Directors Guild of America (DGA) and the International Alliance of Theatrical Stage Employees (IATSE), issued a joint statement this week calling for both parties to reach an agreement. While not explicitly endorsing the merger, the unions emphasized that a protracted legal fight poses a significant risk to the industry and its workers. This stance places them at odds with the Writers Guild of America (WGA), which is also seeking to block the deal, and to a lesser extent, SAG-AFTRA, which has publicly supported the antitrust case with stipulations for concessions.
Christopher Nolan, president of the DGA, is a significant voice in Hollywood, and the guild's position carries considerable weight. Sources close to the DGA indicated that their joint letter with IATSE was not an endorsement of the merger itself, but rather a reflection of the negative business impact caused by prolonged uncertainty.
Hollywood Teamsters 399 also weighed in, with Secretary-Treasurer Lindsay Dougherty stating, "Touting worker prosperity, without commitments, while simultaneously threatening their livelihood in the press as a bargaining chip begs the question — what is in this deal for American film and television workers?"
Despite the increasing pressure, Attorney General Bonta has publicly maintained his stance that the merger is illegal and has stated he does not feel pressured to settle. He characterized threats to leave California as tactics employed by entities with excessive market power. The legal proceedings are set to continue, with discovery commencing on Monday and concluding on January 8, according to a proposed case management order.
David Ellison, CEO of Paramount, has been a key figure in the proposed acquisition. The possibility of Paramount relocating its operations from California has added another layer of complexity and urgency to the ongoing negotiations and legal challenges. IMAGE4