The Writers Guild of America (WGA) has filed a lawsuit seeking to block Paramount's proposed $81 billion acquisition of Warner Bros. Discovery, alleging the merger would cause specific harm to movie and television writers across the United States. The federal complaint, filed jointly by the WGA West and WGA East, contends that the tie-up threatens the economic and creative health of the American entertainment industry.
The union argues that a combined Warner-Paramount entity would lead to fewer competitors in the market, granting the larger company the incentive and ability to lower wages and reduce the number of available projects for writers. WGAE President Tom Fontana stated that the merged company would become the largest employer of writers, wielding significant power to suppress wages, eliminate opportunities for emerging talent, cut industry jobs, and decrease overall programming.
The proposed merger would unite two of Hollywood's remaining legacy studios, bringing Warner's HBO Max, its extensive libraries including "Harry Potter," and CNN under the same umbrella as Paramount's CBS, films like "Top Gun," and the Paramount+ streaming service. The WGA's lawsuit specifically alleges that the merger violates antitrust law by reducing competition in three key areas for writers: episodic TV and streaming series writing, overall TV writing deals, and screenwriting for major theatrical films.
Paramount, owned by Skydance, has countered these claims, asserting that a combined Warner-Paramount would expand, not shrink, opportunities for writers. The company reiterated its commitment to releasing at least 30 movies annually with a 45-day exclusive theatrical window. Paramount also stated it would continue to commission work from independent production companies while maintaining two distinct film studios, emphasizing that a stronger Hollywood should benefit its writers.
The WGA's legal challenge follows a similar lawsuit filed a day earlier by 12 states, led by California Attorney General Rob Bonta. That coalition alleged the merger would "extinguish competition" in Hollywood, resulting in fewer choices for moviegoers and cable TV customers. The states had requested that Warner and Paramount delay the merger until a court could fully evaluate their claims, but reported the companies refused. The states subsequently filed an emergency motion seeking a temporary restraining order and preliminary injunction to halt the deal immediately.
Paramount has called the states' claims "wrong on both the facts and the law" and has vowed to "vigorously defend" its acquisition. The growing list of legal challenges could pose a significant obstacle for Paramount's completion of the Warner acquisition. While regulatory reviews are ongoing in the European Union and the U.K., Paramount has reportedly received approval from several other countries, including the U.S. under the Trump administration, China, Canada, and Australia.
Paramount and Warner had initially aimed to close the deal in the third quarter of the year. However, in their Monday night motion, the states indicated that the companies might attempt to finalize the merger as early as July 22. Including debt, Paramount's proposed purchase of Warner is valued at nearly $111 billion based on outstanding shares.