Two Major Hollywood Unions Call on California Democrat AG Rob Bonta to Settle Paramount Lawsuit

A plan to block the merger between Paramount and Warner Bros. is expected to fail, according to recent reports. The proposed legal challenge, led by California Attorney General Rob Bonta, faces growing resistance from major Hollywood unions, including the Director’s Guild of America (DGA) and the International Alliance of Theatrical Stage Employees (IATSE). Both unions have urged Bonta to withdraw his lawsuit, arguing that prolonged delays will harm industry workers and exacerbate existing job shortages. This stance contrasts with the support shown by the Writers Guild of America (WGA), which has backed the legal action. The dispute centers around the proposed merger between Paramount Pictures, owned by ViacomCBS, and Warner Bros., which is part of AT&T's Discovery Inc. The deal, valued at billions of dollars, has drawn scrutiny from regulators and labor groups alike. Bonta’s lawsuit alleges that the merger violates antitrust laws by creating a dominant force in the entertainment industry. However, the DGA and IATSE argue that the prolonged legal battle risks harming workers who are already struggling to secure steady employment. In an open letter addressed to Bonta and Paramount Skydance CEO David Ellison, the unions expressed concern over the negative impact of the ongoing litigation on their members and the broader film and television industry. The letter, signed by Russell Hollander, national executive director of the DGA, and Matthew Loeb, international president of IATSE, emphasized that the uncertainty caused by the lawsuit has led to production delays and cancellations. “As our members struggle to find employment, the uncertainty surrounding the proposed merger is only making matters worse,” the letter stated. “We are aware of productions that have been put on hold or canceled altogether, leading to further reductions in available work for our members and other industry workers.” The unions also warned that continued legal challenges could result in long-term economic consequences for the sector. This call for resolution follows similar pressure from Alabama Attorney General Steve Marshall, who recently published an op-ed in the Washington Post urging Bonta to abandon the lawsuit. Marshall argued that the case is driven more by political considerations than legal merit, citing concerns over how the merger might influence the direction of CNN, which is owned by Warner Bros. He claimed that the lawsuit reflects a desire to preserve CNN’s perceived liberal leanings rather than focusing on the broader implications for the industry. “The attorneys general who brought the case appear to be so fixated on preserving CNN’s liberal bent that they would kneecap an effort to revitalize Hollywood,” Marshall wrote. Marshall also highlighted the financial implications of the lawsuit, noting that beginning after September 30, Paramount is contractually obligated to pay approximately $650 million per quarter to Warner Bros. shareholders until the merger closes. He argued that this money could have been used to fund new movie and TV show productions, thereby supporting employment opportunities in California and across the U.S. “That is the cost of valuing a political win over workers and families,” he added. The ongoing debate underscores the complex intersection of corporate strategy, labor rights, and political influence in the entertainment industry. As the legal battle continues, the outcome of the merger and its impact on workers remain uncertain. Industry stakeholders, including producers, actors, and crew members, are watching closely to see whether the lawsuit will ultimately succeed or be abandoned in favor of a quicker resolution.