Several Hollywood trade organizations are in support of a dozen state attorneys general who filed suit Monday to block Paramount‘s $110 billion acquisition of Warner Bros. Discovery.
Unsurprisingly, the Writers Guild of America — which has loudly opposed the merger since the beginning of this saga — is chief among them.
Following the news that the long-anticipated litigation had finally been filed in federal court in Sacramento, the WGA East and West wrote in a joint statement: “The merger of two of the largest Hollywood studios will reduce competition in our industry, leading to fewer jobs, lower wages for entertainment workers, less variety of programming, and higher prices for consumers. We have engaged with the offices of many State Attorneys General to explain the impact of this proposed merger, and we commend Attorney General Bonta and this coalition of states for listening to working people in the entertainment industry and fighting to stop this dangerous merger.”
WGA West President Michele Mulroney called the move “one of the worst proposed mergers we’ve seen,” while eastern division chief Tom Fontana said the effects of the acquisition would create an “absolute, unmitigated disaster.”
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The writers guild was not alone in voicing support for the state AGs’ lawsuit. Cinema United, an American trade organization whose members are the owners of movie theaters, also praised state leaders for pushing back on the plans to combine two of Hollywood’s most storied studios.
“We welcome the decision of the Attorneys General of multiple states to challenge the proposed acquisition of Warner Bros. Studios,” Michael O’Leary, President and CEO of Cinema United, said in a statement Monday. “The ramifications of further movie studio consolidation will be significant and lasting, not just in Hollywood, but on Main Streets across this nation where local movie theaters serve as cultural and financial cornerstones for communities of all sizes.”
The lawsuit, filed in federal court in Sacramento on Monday, challenges the transaction as stifling competition for wide release theatrical film distribution, big budget motion picture distribution and licensing of basic cable television channels.
Read the Paramount-Warner Bros. lawsuit filed by state attorneys general.
The focus on those aspects of competition come amid concerns that the merger would lead to widespread layoffs as the combined company grapples with its debt burden. Broader concerns have been on the impact on the creative community and the information environment, with Paramount set to own two legacy news brands, CBS News and CNN, although that was not the subject of the lawsuit’s claims.
California Attorney General Rob Bonta, who led the lawsuit, said in a statement, “The unlawful merger of these two entertainment behemoths would lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S.”
