Paramount and California Trade Threats Over $110 Billion Warner Bros. Merger While Writers Warn It’s a “False Choice”

Los Angeles Mayor Karen Bass called on Paramount Skydance and California Attorney General Rob Bonta to urgently negotiate a settlement in the 12-state antitrust lawsuit blocking Paramount’s $110 billion acquisition of Warner Bros. Discovery. “The continued uncertainty is not good for workers, not good for productions and not good for the future of this industry,” Bass said, adding that “too many productions in L.A. are now at a standstill, which means Angelenos are out of a job and they’re not getting paid.” She insisted her push was “not about taking sides.” IATSE and the Directors Guild of America presented their own settlement proposal, and the CEOs of AMC, Regal, Cinemark and Lionsgate’s Jon Feltheimer joined the call for a deal [1, 2].

Hours later, the Writers Guild of America fired back, saying it was “disappointed” Bass had “chosen to join Paramount’s pressure campaign on public enforcers” and rejecting the studio’s argument that blocking the merger costs jobs, calling it a “false choice.” The union pointed to a county study estimating the merger could eliminate roughly 4,500 TV and film jobs in Los Angeles County and cost $2.78 billion in economic value [3]. The dispute unfolds as Paramount CEO David Ellison has threatened to begin relocating the company out of California starting October 1 if Bonta won’t come to the table, timed to a $7 million-per-day “ticking fee” owed to Warner Bros. Discovery shareholders that starts accruing that same date; a trial in the underlying antitrust case is set for March 2027 [4].

Why It Sucks:

Writers Guild of America

• Bass just gave Paramount cover. The WGA says the mayor lending her voice to a negotiated settlement legitimizes what it calls Paramount’s “pressure campaign” against the very state enforcers trying to block a deal the union considers illegal [3].
• The “jobs now vs. jobs later” framing is a trap. The union “reject[s] the claim that beleaguered industry workers must choose the possibility of a job today, in exchange for the certainty of job losses tomorrow,” arguing the uncertainty Paramount blames on the lawsuit is self-inflicted by its own attempt to dominate the industry [3].
• Thousands of jobs are on the line if the merger closes. A county report the WGA cites projects roughly 4,500 lost TV and film jobs and $2.78 billion in economic damage to Los Angeles County if the combination goes through [3].

Los Angeles Political and Labor Coalition (Mayor Bass, IATSE, DGA, Theater Chains)

• Productions are stalled right now, not hypothetically. Bass says the ongoing legal limbo already has L.A. productions at a standstill, leaving “Angelenos… out of a job and they’re not getting paid” while the case drags toward a 2027 trial [1, 2].
• IATSE and the DGA want guarantees, not gridlock. Both guilds put forward a settlement proposal with specific conditions rather than waiting out a trial, betting a negotiated deal protects more jobs faster than continued litigation [2].
• Theater chains and Lionsgate need this resolved. AMC, Regal, Cinemark and Lionsgate CEO Jon Feltheimer are backing a settlement because prolonged uncertainty over one of the industry’s largest studios threatens the exhibition business that depends on stable output [2].

Paramount Skydance / David Ellison

• The clock is costing $7 million a day. Starting October 1, Paramount begins accruing a “ticking fee” owed to Warner Bros. Discovery shareholders for every day the deal remains unclosed, creating enormous financial pressure to force a resolution [4].
• Ellison is threatening to walk from Hollywood entirely. He’s told his team Paramount will start relocating out of California as soon as October 1 if Bonta won’t negotiate, a threat critics call blackmail but that Ellison frames as unavoidable cost-cutting once the fee clock starts [4].
• The company wants the states to share the financial risk. Paramount has asked the court to force the suing states and the WGA to post a bond covering its losses from the delay, arguing it shouldn’t bear the full cost of a legal fight it says is meritless [4].

Sources & Citations:

[1] Deadline: WGA Rips LA Mayor Karen Bass For Supporting “False Choice” In Paramount-WBD Merger Tangle
[2] TheWrap: Karen Bass Urges Paramount’s David Ellison, California AG Rob Bonta to ‘Find Common Ground,’ Reach Settlement on WB Merger Lawsuit
[3] Variety: L.A. Mayor Karen Bass Weighs In on Paramount-Warner Bros. Merger, Urges California AG Rob Bonta to Engage in Talks on Antitrust Case
[4] Variety: David Ellison Says He’ll Pull Paramount Out of California Starting Oct. 1 if States Refuse to Negotiate Settlement in Antitrust Suit