California Attorney General Rob Bonta encountered more resistance this week when he urged Hollywood’s prominent labor unions, the Directors Guild of America and IATSE, to resolve their lawsuit related to Paramount’s acquisition of Warner Bros.
In an open letter on Wednesday, the DGA and IATSE asked Bonta to reconsider his position and withdraw the lawsuit.
“While we are firm in our belief that mergers like this typically don’t benefit workers much, we’re particularly worried that any delays in decision-making regarding this merger could hurt our members and the broader industry,” the unions expressed.
This stance sharply contrasted with that of the Writers Guild of America (WGA), which supported the lawsuit. The letter was signed by DGA National Director Russell Hollander and IATSE International President Matthew Loeb.
“As our members face challenges in finding jobs, the uncertainty linked to this proposed merger will only exacerbate the situation,” the letter noted. “We are aware that some productions have been delayed or canceled entirely, which further diminishes job opportunities for our members and others in the industry.”
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This letter followed Alabama Attorney General Steve Marshall’s call for Bonta to dismiss the lawsuit, which he articulated in an editorial for the Washington Post.
“This lawsuit seems to be driven more by politics than by legal concerns. Paramount CEO David Ellison suggested that the resistance to the deal stems from worries about the political direction of Warner Bros.-owned CNN.” He remarked that the attorney general initiating the lawsuit seems fixated on maintaining CNN’s liberal stance, appearing somewhat impulsive in efforts to restore Hollywood.
Marshall also pointed out that while the lawsuit might please Hollywood activists, prolonged litigation diminishes the likelihood of lesser-known crew members securing their positions.
“Paramount has a contractual obligation to pay after September 30th,” he stated. “This comes out to approximately $650 million,” which will be distributed to Warner Bros. stockholders quarterly until the merger is finalized. He emphasized that this funding could have supported the production of films and television programs, thereby creating jobs in California and beyond. “This reflects the cost of prioritizing political gains over the well-being of workers and families.”
