BUSINESS/Paramount-Warner Bros. Merger Hits Major Snag—
SAG-AFTRA comes out against the Paramount-Warner Bros. merger. Last Saturday, the union’s national board adopted a resolution opposing the controversial deal. In a news release, SAG-AFTRA President Sean Astin said, “Our members have every right to expect that the government will do thorough regulatory oversight when a deal of this magnitude takes place. The workers in this industry should not have to rely on promises and aspirational statements. These companies have the ability to commit to making more films and shows in this country, and they should. This isn’t a conversation about shareholder value; it’s about the survival of the entertainment business in America.”
The International Brotherhood of Teamsters wants worker and production safeguards in place before the merger is allowed to proceed. SAG-AFTRA wants the same kind of protection against production decreases and increases in the USA to be part of the deal. The actors union also supports lawsuits to block the merger by the Writers Guild and attorneys general from a dozen states.
Earlier this month, Attorney General Rob Bonta announced that California was joining a coalition of attorneys general from 11 other states to file a lawsuit challenging the $111 billion proposed acquisition. Within days, the coalition had won a temporary restraining order pausing the merger. That victory became even larger last Friday with an agreement from the studio giants to put the deal on ice until the court ruled on the coalition’s lawsuit or June 2027, whichever comes first.
Bonta Slams the Deal
“Our argument against this illegal merger is straightforward: When too few corporations have too much power in markets central to American life, it makes things more expensive, and it makes things worse,” said Attorney General Bonta in a press release last Friday. “Today’s agreement is great news for audiences, movie theaters, and the many people who write, build, and create the art, news, and entertainment so many of us enjoy. We are eager to continue to make our case in court and celebrate another tremendous win in our effort to ensure this unlawful merger never sees the light of day.”
Paramount Skydance defends the mega deal, saying it would improve rather than hurt the entertainment industry. “The combination of Paramount and WBD will create a stronger, well-capitalized, creative-first media company that is better positioned to compete with companies like Netflix that have come to dominate the industry for audiences, premium content, and creative talent. Put simply, any attempt to block this transaction undermines the very principles antitrust law is designed to promote: more competition, more choice for consumers, and more opportunities for creators and workers,” according to a Paramount spokesperson in a news release.
