The legal battle over Paramount’s proposed $111 billion acquisition of Warner Bros. Discovery continues to grow. According to The Hollywood Reporter, the Writers Guild of America has filed federal lawsuit seeking to block the merger just one day after a coalition of 12 states launched a similar legal challenge to halt the merger.
The union argues the deal would violate antitrust law by reducing competition and giving the combined company too much control over the market for film and television writing. In its complaint, the WGA argues that if the merger proceeds, the combined company would become “the largest buyer of original film and television programming in the United States,” thereby eliminating competition between two of Hollywood’s biggest studios.
The Hollywood Reporter notes that the union emphasizes the deal would suppress writers’ compensation, reduce employment opportunities, and result in fewer film and television projects. “The proposed Paramount-Warner Bros. merger threatens the economic and creative health of the American entertainment industry,” the complaint states. “The merger must be blocked.”
The WGA also argues that the combined company’s estimated $79 billion debt load could encourage layoffs and fewer productions rather than expanding creative output. According to The Hollywood Reporter, the union believes that continued consolidation would make it easier for major studios to underbid writers and reduce competition across the industry.
In a statement to The Hollywood Reporter, a Paramount spokesperson said the merger would create “more development slates, more series and film greenlights” while maintaining “a strong commitment to working with the guild’s writers.” Paramount also said it has “deep respect for the WGA and its members” and remains committed to building “a combined company that expands opportunities for writers and creative talent for generations to come.”
The lawsuit follows another recent dispute involving the guild. Earlier this year, mxdwn reported on tensions between the Writers Guild of America West and its staff union after guild leadership accused staff members of alleged violence and intimidation during contract negotiations. While unrelated to the merger, the dispute reflected the organization’s willingness to take public action when it believes writers’ interests are at stake.
The WGA has opposed the Paramount-Warner Bros. Discovery merger since it was announced, and Writers Guild West president Michele Mulroney said the deal would eliminate competition “in an already consolidated industry,” threatening both entertainment workers and the creative diversity of film and television.