Key facts
- The Writers Guild of America (WGA) has sued to block Paramount's proposed $111 billion acquisition of Warner Bros. Discovery.
- The WGA alleges the merger violates federal antitrust law.
- The union claims the deal would harm writers' wages, working conditions, and employment opportunities.
- The lawsuit argues the merged company would be the largest buyer of film and television programming, reducing competition.
- Paramount contends the merger would create a stronger Hollywood with more opportunities for writers.
The Writers Guild of America (WGA) has filed a lawsuit seeking to block Paramount's proposed $111 billion acquisition of Warner Bros. Discovery, alleging the deal violates federal antitrust law and would harm writers.
The union argues that the merger would eliminate competition for film and television writing services, leading to suppressed compensation, worse deal terms, and reduced programming volume and diversity. The WGA complaint states that the merged entity would become the largest buyer of original film and television programming in the United States, potentially creating a dominant firm with the ability to lower costs and suppress wages.
According to the WGA, the combined company would hold over 30 percent market share, which breaches Supreme Court precedent for being presumptively anticompetitive. WGA data indicates that Paramount and Warner Bros. collectively accounted for a significant portion of film writing jobs, television projects, and overall deals between 2021 and 2025.
A spokesperson for Paramount responded that the combination would lead to a healthier Hollywood with more opportunities for writers, including more development slates, series and film greenlights, and a continued commitment to working with WGA members. The company also stated its pledge to release at least 30 movies a year and maintain two distinct film studios.
The lawsuit was filed in the U.S. District Court for the Northern District of California and follows a similar antitrust lawsuit filed by 12 state attorneys general the previous day.