Hollywood unions urge settlement in Paramount-Warner merger lawsuit

Major Hollywood unions, including the Directors Guild of America (DGA) and the International Alliance of Theatrical Stage Employees (IATSE), are urging California Attorney General Rob Bonta to reach a settlement regarding the proposed merger between Paramount Skydance and Warner Bros. Discovery.

While the unions remain skeptical of large-scale media consolidations, they expressed concern that the ongoing antitrust litigation is causing severe industry instability. They noted that global film and television production has declined by 35% to 40%, with many projects already suspended or canceled due to the uncertainty. The unions proposed a conditional approval that would include requirements such as keeping film studios separate, maintaining 45-day theatrical windows, and committing to a schedule of 30 films per year.

The legal battle, led by Bonta and a coalition of 12 states, seeks to block the merger over concerns of illegal market consolidation. A federal judge has set a trial date for March 2, 2027. This timeline has increased pressure on Paramount Skydance CEO David Ellison, as delays could result in significant daily costs to Warner Bros. Discovery shareholders.