The Directors Guild of America (DGA) and the International Alliance of Theatrical Stage Employees (IATSE) are calling on California Attorney General Rob Bonta to reach a settlement in the ongoing antitrust lawsuit against Paramount. The unions assert that the continued uncertainty regarding the Warner Bros. Discovery merger is detrimental to both the industry and its workers.
Union Letter Highlights Concerns
In a joint letter addressed to Bonta and Paramount Skydance CEO David Ellison, the two unions urged both parties to negotiate an agreement that would implement conditions to mitigate concerns about potential harm to competition. They expressed a consistent stance against mergers like this one, emphasizing that such consolidations historically provide few advantages for workers. However, their primary concern now is the negative impact that the delay in the decision regarding the proposed merger could have on their members and the wider industry.
Industry Divisions Emerge
This plea from the DGA and IATSE places them at odds with the Writers Guild of America (WGA), which has filed its own antitrust lawsuit to block the merger. This case has created further divisions within Hollywood, with companies like Regal Cinemas and AMC Theatres supporting the merger, while the theater trade group Cinema United stands firmly against it.
Legal Proceedings and Timeline
In July, Bonta led a coalition of twelve states in filing to block the merger, citing concerns over illegal consolidation in the cable and theatrical distribution sectors. Recently, Judge Araceli Martinez-Olguin issued a temporary restraining order that paused the deal, scheduling a trial date for March 2—four months after the timeline proposed by Paramount.
Pressure from Industry Leaders
Throughout this process, Ellison has been actively seeking industry support for the merger and pressuring Bonta to engage in negotiations. However, Bonta has expressed his reluctance to consider “behavioral” remedies, such as a commitment to produce 30 films per year with a 45-day theatrical window. Instead, he has emphasized the need for a structural solution, which Paramount has yet to embrace.
