Writers guild sues to block Paramount-Warner merger

LOS ANGELES

The Writers Guild of America (WGA) has filed a federal lawsuit seeking to block Paramount’s proposed acquisition of Warner Bros. Discovery, arguing that the multibillion-dollar merger would reduce competition in Hollywood, lower wages for writers and lead to fewer film and television projects.

The complaint, filed on July 14 by the Writers Guild of America West and the Writers Guild of America East, marks the latest legal challenge to Paramount’s planned purchase of Warner. The union contends that combining two of Hollywood’s remaining major studios would create an entertainment giant with unprecedented leverage over writers and other creative workers.

According to the lawsuit, the merger threatens “the economic and creative health of the American entertainment industry” by reducing the number of major employers competing for writing talent.

The WGA argues that the combined company would have both the incentive and the ability to suppress writers’ compensation, cut employment opportunities and commission fewer productions, ultimately limiting creative output across the industry.

“This proposed combined entity would be the largest employer of writers, with tremendous power to suppress our wages, eliminate opportunities for emerging writers, cut jobs across the industry, and produce less programming,” WGA East President Tom Fontana said in a statement.

If completed, the deal would unite two of the five remaining legacy Hollywood studios. Warner’s assets, including HBO Max, CNN and the “Harry Potter” franchise, would join Paramount’s CBS network, the “Top Gun” film franchise and the Paramount+ streaming platform under one corporate umbrella.

The union alleges that the transaction violates U.S. antitrust law by substantially reducing competition in three key markets for writers: episodic television and streaming series, television writing deals more broadly and screenwriting for major theatrical releases.

Paramount rejected the claims, saying the merger would strengthen rather than weaken opportunities for creative professionals.

In a statement, the company said the combined business would “expand opportunities for writers, not shrink them.” Paramount also reiterated its commitment to releasing at least 30 films annually, with each receiving a 45-day exclusive theatrical window before streaming availability.

The company added that it intends to continue working with independent production companies while maintaining two distinct film studios after the acquisition.