DGA and IATSE Urge Rob Bonta to Approve Paramount-Warner Bros. Merger with Specific Conditions
In a significant development within the entertainment industry, the Directors Guild of America (DGA) and the International Alliance of Theatrical Stage Employees (IATSE) have urged California Attorney General Rob Bonta to expedite a settlement regarding his antitrust lawsuit against Paramount. The unions are expressing concern that extended delays related to the proposed merger with Warner Bros. Discovery could have detrimental effects on the industry and its workforce.
In a recent letter to Bonta and Paramount Skydance CEO David Ellison, both unions argued for a resolution that could incorporate conditions to mitigate potential negative impacts on competition. While they acknowledge a historic skepticism toward mergers and their benefits for workers, the unions emphasize the urgent need for clarity in this instance. They assert that uncertainty regarding the merger has already begun to adversely affect employment opportunities for their members and the broader workforce within the sector.
This stance places the DGA and IATSE at odds with the Writers Guild of America, which has actively sought to block the merger through its own antitrust litigation. The internal divisions within the industry have become pronounced; while major theater chains such as Regal Cinemas and AMC Theatres have publicly supported the merger, the trade group Cinema United has voiced strong opposition.
In July, Bonta led a coalition of twelve states in an effort to halt the merger, arguing that it would result in unlawful consolidation within both basic cable and theatrical distribution markets. In light of these legal challenges, a temporary restraining order issued by Judge Araceli Martinez-Olguin has temporarily paused the deal, with a trial date set for March 2—delaying the timeline that Paramount originally sought.
Ellison has actively worked to garner support and apply pressure on Bonta to reach an agreement. However, Bonta remains resistant to “behavioral” solutions that merely address operational concerns, insisting instead on a more comprehensive structural remedy that Paramount has yet to accept.
The unions’ letter, signed by DGA National Executive Director Russell Hollander and IATSE International President Matthew Loeb, argues that the ongoing legal proceedings exacerbate challenges in an already suffering industry. They highlight that numerous productions have been suspended or canceled as a result of the merger uncertainty, further diminishing job prospects for workers.
In a hope to facilitate progress, the unions are advocating for an agreement that would maintain both studios as separate entities with a commitment to produce a minimum of 15 films annually. Additionally, they emphasize the importance of continuing content licensing at pre-merger levels. Should negotiations fail, there is a call for an expedited trial date to minimize the ongoing impact on the workforce, yet the states involved in the case have requested more time to gather evidence.
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