Key facts
- Entertainment workers, small business owners, and politicians rallied in Los Angeles to oppose the proposed acquisition of Warner Bros. Discovery by Paramount Skydance.
- The proposed transaction is valued at $110 billion.
- Protesters fear the merger will lead to job losses, reduced consumer choice, and decreased competition in the creative industry.
- A group of U.S. states, including California and New York, are reportedly preparing a lawsuit to block the deal.
- Paramount Skydance stated the merged companies would have economic incentives to expand production and increase competition.
A rally organized by entertainment workers, small business owners, and politicians took place in Los Angeles to protest the proposed $110 billion acquisition of Warner Bros. Discovery by Paramount Skydance. Comedian Adam Conover, who spoke at the event, framed media consolidation as an existential threat to the industry.
Approximately 100 people gathered at the Lumiere Music Hall for the "Main Street vs. The Merger" tour stop. Concerns voiced included potential job losses, reduced consumer choice, and a decrease in competition within the creative ecosystem. Conover cited his own experience with job losses following AT&T's acquisition of Time Warner.
Despite assurances from Paramount Skydance CEO David Ellison that the combined studios would maintain production levels and expand opportunities, a group of U.S. states, including California and New York, are reportedly preparing to file a lawsuit to block the deal. A Paramount spokesperson argued that opposing the merger would hinder consumer choice, creator opportunities, and competition.
Data indicates a decline in entertainment industry employment, with California alone shedding over 17,000 positions between 2019 and 2023. Occupancy rates for Hollywood sound stages have fallen significantly, and union members have reported fewer working hours. Post-production facility co-founder Matt Radecki expressed fears that the merger could lead to fewer buyers for documentary films.
Former Federal Trade Commissioner Alvaro Bedoya suggested that California Attorney General Rob Bonta might be able to block the merger, potentially by arguing it lessens competition among film studios or for specific types of labor, citing a precedent from the Penguin Random House-Simon & Schuster deal. Economist Ioana Marinescu noted that workers with highly specialized jobs at these companies could be adversely impacted.