The Writers Guild of America (WGA) has launched a legal challenge to prevent the proposed merger between Paramount Skydance and Warner Bros. Discovery, arguing the deal violates federal antitrust law and would significantly harm writers.
Filed jointly by WGA East and West in California’s Northern District, the lawsuit contends that Paramount Skydance’s planned $110 billion acquisition of Warner Bros. Discovery would diminish opportunities, depress wages and deteriorate working conditions for its members.
This legal action by the WGA follows a similar suit initiated just yesterday by California and eleven other states, also seeking to block the proposed takeover.
The guild asserts that eliminating a key competitor and establishing a new dominant entity would lead to a reduction in the quantity and diversity of theatrical films and television series, as the combined company would possess greater power to curb production.
Furthermore, the complaint asserts that the merger would increase the ability for the few remaining companies to tacitly coordinate to further suppress competition for writers’ work.
“With fewer competitors, the merged Paramount-Warner Bros. entity would have both the incentive and the ability to lower costs by suppressing writers’ wages and reducing output,” according to the complaint. “Writers will be paid less and have fewer employment opportunities.”
The WGA complaint focuses on the alleged anticompetitive effects of the merger in three markets for writing services: anticipated top grossing films, episodic television and streaming series, and overall deals.
“If Paramount succeeds in buying Warner Bros., the merged firm will be the largest buyer of original film and television programming in the United States,” WGAW President Michele Mulroney said in a statement.
“This would eliminate competition in an already consolidated industry, threatening the livelihoods of entertainment workers and the creative diversity of TV and film,” he said. “We applaud the dozen state attorneys general who have stepped up to enforce our antitrust laws and are proud to file suit alongside them.”
In announcing the states’ lawsuit Monday, California Attorney General Bonta argued that the merger, which has already been approved by the U.S. Department of Justice, would lead to higher prices for consumers and a reduction in entertainment content.
Bonta said the merger — considered one of the biggest media deals in history — would put one company in charge of nearly one-third of all theatrical motion picture and basic cable programming.
