The Directors Guild of America (DGA) and the International Alliance of Theatrical Stage Employees (IATSE) are calling on California Attorney General Rob Bonta to reach a settlement in his antitrust lawsuit against Paramount. They contend that ongoing uncertainty regarding the Warner Bros. Discovery merger is detrimental to the industry.
In a letter addressed to Bonta and Paramount Skydance CEO David Ellison, the two unions urged both parties to find a resolution that includes measures to mitigate competitive harm.
âWe have consistently maintained that mergers like this typically provide minimal advantages to workers. Our primary concern is the negative effect that delays in deciding on the proposed merger could have on our members and the industry as a whole,â the unions stated.
This position places the unions at odds with the Writers Guild of America, which has filed a separate antitrust lawsuit to block the merger. The antitrust proceedings have stirred further discord within the industry, with Regal Cinemas and AMC Theatres supporting the merger, while the theater trade group Cinema United staunchly opposes it.
Bonta, leading a coalition of 12 states, initiated legal action in July to prevent the merger, arguing that it results in illegal consolidation in the basic cable and theatrical distribution markets. Judge Araceli Martinez-Olguin temporarily halted the deal and recently scheduled a trial for March 2, a date four months later than Paramount desired.
Ellison is actively seeking support for the merger within the industry and exerting pressure on Bonta to engage in negotiations. Bonta has consistently dismissed “behavioral” remedies, such as a commitment to release 30 films annually with a 45-day window, emphasizing instead a structural solution, which Paramount has not yet accepted.
The letter, signed by DGA national executive director Russell Hollander and IATSE international president Matthew Loeb, contends that the March 2 trial date is detrimental to an industry already facing challenges.
âWith our members struggling to secure employment, the uncertainty surrounding the proposed merger exacerbates the situation,â the letter claims. âWe have seen productions postponed or canceled entirely, further reducing job opportunities for our members and other industry workers.â
The letter encourages both parties to agree on conditions that Paramount has largely accepted, such as keeping the two studios as separate entities, each producing at least 15 films annually. The unions also propose that Paramount continue licensing content from external production companies at the same rate as before the merger.
If no agreement is reached, the unions recommend an earlier trial date. While Paramount is keen on expediting the process, the states have requested additional time to question Paramount executives and gather documents to strengthen their case.
