The Writers Guild of America (WGA) has filed a federal lawsuit seeking to block Paramount's $81 billion acquisition of Warner Bros. Discovery, asserting the merger would harm movie and television writers across the United States.
The union argues that the combination of Paramount and Warner Bros. Discovery, two of Hollywood's last legacy studios, would create a dominant employer with the power to lower wages, reduce employment opportunities, and decrease the number of available projects for writers. The complaint, filed by both the Writers Guild of America West and Writers Guild of America East, contends that the merger violates antitrust law by diminishing competition in key markets for writers, including episodic television, streaming series, and theatrical films.
"This proposed combined entity would be the largest employer of writers, with tremendous power to suppress our wages, eliminate opportunities for emerging writers, cut jobs across the industry, and produce less programming," said WGA East President Tom Fontana in a statement.
Paramount, owned by Skydance, has countered the WGA's 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 and maintaining distinct film studios. "A stronger Hollywood only means something if it’s stronger for the writers who power it," Paramount said in a statement.
The WGA's lawsuit follows a similar legal challenge initiated by 12 states, led by California Attorney General Rob Bonta. That coalition filed suit alleging the deal would "extinguish competition" and result in fewer choices for consumers. The states sought a temporary restraining order and preliminary injunction to halt the deal, but Paramount called their claims "wrong on both the facts and the law" and vowed to defend the acquisition.
Regulatory reviews are also underway in the European Union and the U.K. Paramount and Warner Bros. Discovery had aimed to close the deal in the third quarter of the year, with the states suggesting a potential closing date as early as July 22. The proposed purchase is valued at nearly $111 billion including debt.