Two of Hollywood’s largest unions have jointly urged California Attorney General Rob Bonta and Paramount Skydance CEO David Ellison to resolve an ongoing antitrust lawsuit over the proposed merger with Warner Bros. Discovery before it further destabilizes the industry.
The Directors Guild of America (DGA) and International Alliance of Theatrical Stage Employees (IATSE) sent a letter on August 12 requesting direct negotiations or an expedited trial date, citing concerns that prolonged uncertainty is threatening thousands of jobs. The unions, representing roughly 200,000 workers, warned that production delays and canceled projects are already reducing available work. They noted that global film and television production has declined by 35% to 40%, with California experiencing even steeper losses as productions increasingly move overseas.
The lawsuit, filed by Bonta and 11 other state attorneys general, alleges antitrust violations and is currently scheduled for trial in March 2025. However, Paramount executives have indicated that the delay is imposing significant financial and operational costs. Paramount owes Warner Bros. Discovery $7 million daily starting in October, with a potential $7 billion termination fee if the merger is not completed by June 2027. Paramount Skydance’s Chief Legal Officer Makan Delrahim stated that while CEO David Ellison remains committed to California, fiduciary duties to shareholders may necessitate considering relocation if the lawsuit drags on.
The unions’ plea contrasts with the stance of the Writers Guild of America (WGA), which has publicly supported the lawsuit. The WGA has not signed the letter, underscoring divisions within Hollywood over the merger’s potential impact. Meanwhile, Alabama Attorney General Steve Marshall criticized the lawsuit in an op-ed, arguing that it is politically motivated and risks harming below-the-line workers by prolonging uncertainty.
Paramount has not ruled out relocating its headquarters, with Texas, Tennessee, and Georgia among the states being considered. The company’s deep roots in Southern California were acknowledged in a letter to lawmakers, but executives have emphasized the need to weigh legal and financial risks. The antitrust allegations center on concerns that the merger would concentrate too much media power under one corporate umbrella, particularly affecting CNN and CBS.
Industry analysts note that the lawsuit’s outcome could set a precedent for future media mergers, while the unions argue that immediate resolution is critical to stabilizing an already struggling sector. The DGA and IATSE have called for either a settlement or an expedited trial to mitigate further damage to their members’ livelihoods.