A proposed merger between entertainment giants Paramount and Warner Bros. could lead to the elimination of more than 10,000 jobs and a substantial impact on the Los Angeles economy, according to a new report.
The Los Angeles County Department of Economic Opportunity estimates that approximately 10,360 jobs and $4.06 billion in business output are at risk if the deal between the two studios proceeds. The report, released by the LA County Film Office, indicates that around 4,500 direct film and TV production jobs in Los Angeles County could be lost over a three-year period following the merger.
Additionally, the study projects that 2,661 jobs at small businesses supporting film and TV production could be affected. A further 3,204 jobs tied to the local spending of entertainment workers are also estimated to be at risk.
The economic consequences extend beyond direct employment. The county estimates potential losses of $1.26 billion in wages, $2.78 billion in economic value, and $4.06 billion in total business output.
The findings are part of a 120-day assessment ordered by the Los Angeles County Board of Supervisors, following a 60-day interim report submitted in June. The Board approved the Department of Economic Opportunity to study the potential workforce impacts in March.
The proposed acquisition has also drawn legal challenges. California Attorney General Rob Bonta, along with 11 other state attorneys general, filed a lawsuit in July seeking to block the $110 billion acquisition. Bonta described the merger as "unlawful," warning of potential negative consequences such as higher prices, lower quality, and reduced content for consumers in the film and television industry, impacting movie theaters, cable distributors, and audiences nationwide.