The Writers Guild of America (WGA) has responded to a threat from Paramount Skydance CEO David Ellison, who suggested pulling Paramount out of California on October 1. This comes if California Attorney General Rob Bonta does not negotiate and settle the antitrust lawsuit aiming to stop Paramount’s acquisition of Warner Bros.
“By threatening to leave the state because it doesn’t want the government to enforce the law, Paramount further proves the danger of its outsized power over the industry and what that will mean for writers and the creative community,” the WGA told Variety in a statement. “This type of behavior is precisely why the merger should be blocked.”
The WGA, alongside Bonta and a coalition of 12 states, is working to block the $110 billion merger between Paramount and Warner Bros. The guild’s lawsuit, filed with its West and East branches, argues that the merger violates antitrust laws and would cause irreparable harm to industry writers.
The Attorney General’s lawsuit claims the merger breaches the Clayton Act by reducing competition in key markets: wide-release theatrical distribution, top-grossing theatrical distribution, and basic cable licensing. In response to Paramount’s threat to leave the state, Bonta wrote on X Tuesday, “In a span of weeks, Paramount agreed to halt the merger until a court decision or until June 2027, asked for a November trial, and is now back with another attempt to blackmail the state into letting an illegal deal through. Paramount has lost the plot as it continues to lose in court. It didn’t work the first time — on the eve of our July lawsuit — and it won’t work this time.”
Starting October 1, Paramount will incur a $7 billion daily fee to Warner Bros. shareholders for each day the deal remains unclosed. The Attorney General’s lawsuit is set to go to trial on March 2, 2027. Without a settlement, Paramount could owe over $1 billion to Warner Bros. Discovery shareholders by the trial’s conclusion.
In a New York Times op-ed, Ellison expressed that the opposition to the Paramount-Warner Bros. merger isn’t about industry consolidation but concerns over his potential control of CNN. Throughout the acquisition process, Ellison has been open about his friendship with President Donald Trump, a known critic of CNN. Concerns have also been raised about possible mismanagement of CNN under Ellison’s leadership, particularly given issues at CBS News and “60 Minutes.”
“Great news organizations like CNN and CBS News are here to tell it straight down the middle,” Ellison wrote. “That requires newsrooms that reflect the whole world, not one side of it. And it requires independence. Our journalists will continue to answer to the facts and to all the people they serve — not to any party or cause. These were founding principles for both CNN and CBS News, for legends like Ted Turner and Edward R. Murrow, and it is exactly that kind of independence that has always fueled the greatness of ‘60 Minutes.’”
