The Writers Guild of America West and East have sued to stop Paramount Skydance’s proposed $111 billion takeover of Warner Bros. Discovery, arguing that the merger would breach US antitrust law and leave writers worse off. The unions say combining two major entertainment groups would reduce competition for film and television writing work, leading to lower pay, fewer job opportunities and less creative output. The case matters because it adds a labour-focused challenge to a major Hollywood deal that is already under broader antitrust scrutiny from public authorities.

The lawsuit was filed in the US District Court for the Northern District of California, a day after 12 Democratic state attorneys general brought their own case seeking to block the merger on competition grounds in theatrical and basic cable television markets. The WGA says the deal would harm writers across three areas: high-grossing films, episodic television and streaming series, and overall deals, by giving the merged company greater power to cut costs and reduce output. Paramount rejected that argument, saying a larger combined company would support more development, more greenlights and at least 30 film releases a year, while preserving two separate film studios and maintaining commissioning from independent producers.