WGA Slams Merger, Cites Paramount's State Threat

The Writers Guild of America (WGA) has initiated legal action to block the proposed merger between Paramount and Skydance. The guild contends that the consolidation would significantly disadvantage writers by diminishing the number of major studios available for screenplay and TV show deals. This legal challenge is particularly intensified by a recent threat from Paramount CEO David Ellison, who reportedly stated he would move Paramount operations out of California if the state's Attorney General, Rob Bonta, did not settle his lawsuit.

The WGA views Ellison's threat as further evidence of the merger's potential harm to the creative community and the industry. This action by the WGA is separate from lawsuits filed by a coalition of state attorneys general. Their legal arguments center on the merger's potential to reduce competition within the theatrical and cable TV markets, and to unlawfully increase the concentration of wide-release and blockbuster films.

Paramount, through its general counsel Makan Delrahim, has pushed back against claims that Ellison's threat was "blackmail." Delrahim argued that protracted delays in merger approvals, especially after securing clearance from numerous international bodies and the DOJ, negatively impact the business environment. He suggested that Paramount must consider relocating to a more "wanted" business environment.

Attorney General Bonta indicated openness to negotiating structural remedies but dismissed Paramount's pledge to release 30 films annually as an insufficient "behavioral remedy," deeming such promises difficult to enforce and less effective in resolving the core issues. Paramount Skydance and Bonta's office are slated for a trial in March.