Unions urge Bonta to settle Paramount-Warner merger lawsuit with safeguards
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The Directors Guild of America and IATSE have urged California Attorney General Rob Bonta and Paramount Skydance to settle the states’ antitrust challenge to Paramount’s proposed Warner Bros. Discovery merger, with conditions designed to protect workers and competition. The unions say the prolonged legal uncertainty is harming an already struggling film and television industry, contributing to productions being delayed or cancelled and reducing available work.
Bonta led 12 states in suing to block the deal in July, alleging unlawful consolidation in basic cable and theatrical distribution; a judge paused the transaction and set a trial for 2 March. The unions propose keeping the studios separate and requiring each to make at least 15 films annually, as well as maintaining licensing from independent producers; the WGA and Cinema United oppose the merger, while AMC and Regal support it.
- DGA and IATSE want a conditional settlement.
- States allege the merger would unlawfully reduce competition.
- Unions say delay is costing industry jobs.
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The proposed deal would combine Paramount, a long-established Hollywood studio and broadcaster, with Warner Bros. Discovery, which owns Warner Bros. film and television businesses as well as networks and streaming services. State attorneys general, led by California’s Rob Bonta, argue that bringing the companies together could give one firm too much control over the making, distribution and sale of films and television programmes.
The Directors Guild of America represents directors, while IATSE represents many behind-the-scenes film and television workers, including crew and technicians. They want the legal case settled with conditions intended to protect production levels and opportunities for independent producers, saying prolonged uncertainty is affecting work.
Other groups have different views because the outcome could shape competition across cinema, television and streaming. The Writers Guild of America and Cinema United oppose the merger, while cinema chains AMC and Regal support it, reflecting their differing interests in how films are made, supplied and shown.
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The case for
Supporters argue that a conditional settlement could give the industry needed certainty while protecting jobs during a difficult production downturn. They contend that enforceable commitments to keep the studios operationally separate, maintain substantial film output and continue buying from independent producers could preserve creative employment and competition better than prolonged litigation. Their underlying view is that a carefully regulated deal may offer stability without abandoning public-interest safeguards.
The case against
Opponents argue that the merger would still concentrate too much power over theatrical distribution and basic cable, weakening competition even if temporary conditions are attached. They contend that promises on film output or separate operations can be hard to monitor and may not prevent future job cuts, reduced choice for independent producers or less bargaining power for creative workers. Their underlying view is that preserving genuinely independent studios is a more durable protection for audiences, workers and the wider production ecosystem.
More coverage
- The Hollywood Reporter — California Pressured By Two Hollywood Unions to Settle Paramount-Warner Bros. Lawsuit
- Deadline — DGA & IATSE Urge Fast Track On Paramount-WBD Merger Standoff For Fears That Prolonged Court Battle Will Hurt Jobs
- Consequence — Paramount Open to Selling CNN to End Lawsuit Holding Up Warner Bros. Takeover
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Originally published by Variety as “DGA and IATSE Push Rob Bonta to Allow Paramount-Warner Bros. Merger With Conditions”.