Writers Guild Sues to Block Paramount-Warner Bros. Merger
The day after 12 state attorneys general sued to block the Paramount-Warner Bros. Discovery merger, the Writers Guild of America has filed its own lawsuit to impede the $111 billion mega-deal.
Read more FX and Hulu’s ‘Far Cry’ Adds Steve Buscemi
The labor union representing film and television writers filed a suit in U.S. district court for the northern district of California on Tuesday alleging that the deal breaks antitrust law and would harm wages and working conditions for writers by creating a single mega-buyer of film and television programming with outsized power.
“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, eliminating vigorous competition from a major film and television studio that has operated for more than a century,” the complaint reads.
The lawsuit continues, “The proposed Paramount-Warner Bros. merger (“Merger”) threatens the economic and creative health of the American entertainment industry. The Merger would eliminate competition for buying film and television writing, resulting in suppressed compensation, worse deal terms, and reduced programming volume and diversity. The merger must be blocked.”
The Hollywood Reporter has reached out to Paramount Skydance and Warner Bros. Discovery, who are both defendants in the suit, for comment. Read the full complaint .
In its complaint, the WGA paints a picture of two major vertically integrated studios that currently compete for scripts and talent, with direct benefits for writers, who can receive multiple bids for their work and pit one studio against another. Knock-on benefits include a diversity of storytelling for consumers as companies seek to differentiate themselves from their competitors and a greater volume of projects as a firms vie for consumer interest and take creative risks alongside seemingly safer bets.
Read more ‘Backrooms’ Is Now Streaming: Where to Watch A24’s Box Office Hit at Home
The complaint argues that the combination of Warner Bros. and Paramount would disrupt this fragile harmony. “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. Writers will be paid less and have fewer employment opportunities,” the complaint reads. Consumers would have fewer, and more homogenized, entertainment options.
According to the union, this merger would create a company with more than 30 percent market share and, breaching Supreme Court precedent that found a market share exceeding that amount as “presumptively anticompetitive.”
In a statement about the lawsuit, Writers Guild West president Michele Mulroney said, “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.”
She added, “This would eliminate competition in an already consolidated industry, threatening the livelihoods of entertainment workers and the creative diversity of TV and film. We applaud the dozen state Attorneys General who have stepped up to enforce our antitrust laws and are proud to file suit alongside them.”
Read more Manny Jacinto and Randall Park to Be Honored at CAPE’s 35th Anniversary Gala
More to come.