The Writers Guild of America (WGA) has filed a federal lawsuit seeking to block Paramount’s $81 billion acquisition of Warner Bros. Discovery, asserting that the merger would harm movie and television writers across the United States. The union contends that the combined entity would wield significant power to lower wages, decrease employment opportunities, and reduce the overall volume of programming.
The lawsuit, filed by both the Writers Guild of America West and Writers Guild of America East, alleges that the merger violates antitrust law by diminishing competition in key areas for writers: episodic TV and streaming series writing, overall TV writing deals, and screenwriting for major theatrical films. According to the WGA, the proposed company would become the largest employer of writers, giving it "tremendous power to suppress our wages, eliminate opportunities for emerging writers, cut jobs across the industry, and produce less programming."
A merger would consolidate two of Hollywood's last remaining legacy studios, bringing together Warner's HBO Max, its extensive film and television libraries, and CNN with Paramount's CBS, its film studio, and the Paramount+ streaming service.
Paramount has refuted these claims, stating that a combined Warner-Paramount would "expand opportunities for writers, not shrink them." The company reiterated its commitment to releasing at least 30 movies annually with a 45-day exclusive theatrical window, continuing to commission work from independent production companies, and maintaining "two distinct film studios." In a statement, Paramount asserted, "A stronger Hollywood only means something if it’s stronger for the writers who power it."
The WGA's legal challenge follows a lawsuit filed by 12 states, led by California Attorney General Rob Bonta, on Monday. That coalition also alleged that the merger would "extinguish competition" in Hollywood, leading to fewer choices for consumers. The states requested that the merger not be finalized until a court could fully evaluate their claims, but reported that Warner and Paramount refused. The states subsequently filed an emergency motion for a temporary restraining order and preliminary injunction to halt the deal.
Paramount described the states' claims as "wrong on both the facts and the law" and pledged to "vigorously defend" its acquisition of Warner. The company also noted that it has received approval from regulatory bodies in several countries, including China, Canada, and Australia, as well as from the Trump administration in the U.S.
Paramount and Warner had aimed to close the deal in the third quarter of this year. The states' emergency motion indicated that the companies might attempt to complete the transaction as early as July 22. Including debt, the proposed purchase of Warner by Paramount is valued at nearly $111 billion based on outstanding shares.