Hollywood labor is decidedly divided over the proposed Paramount Skydance acquisition of Warner Bros. Discovery. While the Writers Guild has firmly opposed the $110 billion merger, the Directors Guild of America and IATSE now say they are prepared to support the deal—provided that Paramount accepts several conditions intended to preserve theatrical filmmaking and competition between the studios.
READ MORE: Judge Temporarily Blocks Paramount’s $110 Billion Warner Bros. Discovery Merger
In a joint letter sent Wednesday to Paramount leadership and California Attorney General Rob Bonta, the DGA and IATSE urged Bonta to negotiate a settlement rather than continue pursuing the lawsuit brought by California and 11 other states to block the acquisition (via Variety).
The unions’ support is contingent on Paramount keeping its film operation separate from Warner Bros., maintaining theatrical windows of at least 45 days, and honoring CEO David Ellison’s pledge that the two studios would collectively release at least 30 movies each year.
The letter said the unions’ objective was to preserve a “vibrant, competitive marketplace,” while addressing concerns about price distortions, market abuses, and reduced choice resulting from further consolidation.
That position puts the DGA and IATSE at odds with the WGA, which has argued that combining two of Hollywood’s five major film distributors would eliminate jobs, weaken workers’ bargaining power, and reduce the number and variety of movies and television shows being produced.
Bonta’s coalition filed suit in July, alleging that the merger violates federal antitrust law. According to the California Attorney General’s office, the combined company would control approximately 27% of the wide-release theatrical market and more than 30% of films expected to become major box-office performers. Paramount and Warner Bros. have agreed to remain separate while the case proceeds.
The unions’ intervention arrives as Ellison increases pressure on Bonta to negotiate. Paramount has reportedly considered relocating much of its operation outside California if the Attorney General refuses to discuss a settlement, a threat Bonta characterized as “blackmail.”
The DGA and IATSE appear to believe that enforceable production and theatrical commitments could provide more immediate protection for their members than a prolonged legal fight. But the core question remains whether two nominally separate studio labels operating under one corporate owner would constitute meaningful competition—or preserve the appearance of it.
