The Writers Guild of America West and Writers Guild of America East filed a lawsuit seeking to block Paramount Skydance‘s proposed $111 billion takeover of Warner Bros. Discovery, alleging it violates federal antitrust law and would cause specific harm to writers.
The lawsuit was filed Tuesday in the U.S. District Court for the Northern District of California. It comes a day after 12 Democratic state attorneys general also filed an antitrust lawsuit to block the merger, alleging Paramount-WBD would have anticompetitive power in theatrical and basic cable TV markets.
“With fewer competitors, the merged Paramount-Warner Bros. entity would have both the incentive and the ability to lower costs by suppressing writers’ wages and reducing output. Writers will be paid less and have fewer employment opportunities,” the WGA complaint states. The WGA complaint is available at this link.
Asked for comment, a Paramount rep said in a statement: “A stronger Hollywood only means something if it’s stronger for the writers who power it. A combined Paramount-WBD will have the scale and resources to reverse the current trends in our industry and expand opportunities for writers, not shrink them: more development slates, more series and film greenlights, and our continued strong commitment to working with the guild’s writers across our brands.”
The company’s statement continued, “Our clear incentives and pledge to release at least 30 movies a year, with full 45-day windows, continue commissioning from independent production companies, and maintain two distinct film studios reflects our commitment to preserving and boosting creative competition. Combined with our commitment to preserve our iconic brands under independent creative leadership, this will mean more jobs, more writers’ rooms, more staffed positions, and more sustained work across film and television — not less.”
The WGA’s lawsuit focuses on the alleged anticompetitive effects of the Paramount-WBD merger in three markets for writing services: anticipated top grossing films, episodic television and streaming series, and overall deals.
The complaint alleges the merger would “reduce opportunities, lower pay and worsen working conditions for writers,” according to the WGA. “The elimination of a key competitor and the creation of a new dominant firm would result in reduction in the quantity and variety of theatrical films and television series as the merged company would have a greater ability to reduce output. Furthermore, the complaint asserts that the merger would increase the ability for the few remaining companies to tacitly coordinate to further suppress competition for writers’ work.”
WGA West president Michele Mulroney said in a statement: “If Paramount succeeds in buying Warner Bros., the merged firm will be the largest buyer of original film and television programming in the United States. This would eliminate competition in an already consolidated industry, threatening the livelihoods of entertainment workers and the creative diversity of TV and film. We applaud the dozen state attorneys general who have stepped up to enforce our antitrust laws and are proud to file suit alongside them.”
Since Paramount’s proposed acquisition of Warner Bros. Discovery was announced, the WGA said, the union has raised awareness about this threat to state attorneys general offices and federal legislators, submitted comments to regulatory agencies and Congress, and participated in press events as part of a coalition of democracy and arts organizations.
“The Writers Guild of America will not stand idly by as Paramount attempts to violate our country’s antitrust laws and deepen the contraction entertainment workers already feel,” said WGA East president Tom Fontana. “This proposed combined entity would be the largest employer of writers, with tremendous power to suppress our wages, eliminate opportunities for emerging writers, cut jobs across the industry, and produce less programming, effecting the range of storytelling. This merger is not inevitable and we are fighting to stop it.”
In its statement about the lawsuit, Paramount said about the WGA, “As a century-old storytelling company, we have deep respect for the WGA and its members, as evidenced by our commitments in our recently renewed collective bargaining agreement, and we remain committed to building a combined company that expands opportunities for writers and creative talent for generations to come. The alternative to our transaction is a continued decline of the entertain industry increasingly dominated by big tech companies. ”
WGA is represented in the lawsuit by Shinder Cantor Lerner, Cuneo Gilbert Flannery & LaDuca, and Platkin LLP.