Hollywood Unions Tackle Antitrust Concerns Over Merger

Two major unions in Hollywood are stepping up in the ongoing dispute with California Attorney General Rob Bonta regarding the proposed merger between Paramount and Warner Bros. Discovery.

The message from the Directors Guild of America (DGA) and IATSE, which represents junior crew members, is quite clear: they want negotiations. On Wednesday, they sent a letter to both Bonta and Paramount CEO David Ellison, urging them to find a resolution to the attorney general’s contentious antitrust case.

The unions argue that a lengthy legal battle over this merger would disadvantage their members. They suggested that both parties “negotiate directly to negotiate a resolution that would improve the anti-competitive aspects of the proposed merger.”

One of the key conditions proposed is that Paramount commit to staying in Los Angeles. Recent reports have indicated that Ellison is considering relocating the studio out of California due to Bonta’s antitrust lawsuit challenging the entertainment giant’s $110 billion acquisition.

If no resolution is found, the letter indicates that the unions are pushing for an expedited trial date, which is currently set for March of next year; Ellison had been advocating for a start date as early as November.

Signed by IATSE Chairman Matthew Loeb and DGA Executive Director Russell Hollander, the letter expressed that while both unions have often viewed such mergers as having little benefit for workers, they are concerned that delays in reaching a verdict could adversely affect their members and the industry.

They also believe that if the merger isn’t approved, it’s necessary to weigh the pros and cons of alternative outcomes, especially if the competitive issues tied to the merger can be resolved through a binding agreement.

However, this letter shouldn’t be misconstrued as an endorsement of the merger. Both unions see the potential for a drawn-out lawsuit to halt operations at one or more studios for potentially up to a year.

Interestingly, these unions find themselves at odds with the Writers Guild of America (WGA) and SAG-AFTRA, which have taken a firmer stance against the merger. The WGA has filed its own lawsuit to block the transaction, while SAG-AFTRA adopted a resolution backing the WGA’s efforts.

In a rather alarming move, Paramount’s board approved an evacuation plan for its Hollywood studios should Bonta not engage in settlement discussions by October 1. Ellison has signaled that if negotiations do not proceed, a move to states like Tennessee, Texas, or Georgia could be on the table.