The Writers Guild of America (WGA) has filed yet another lawsuit, this one to block the merger of Warner Bros. Discovery with Paramount Skydance, and it is just one of the legal challenges which the deal has faced since its announcement.
The union resists the proposal on the basis that it would be an antitrust violation, that it would lessen the amount of competition in the entertainment field and that it would be bad for writers and that it would result in fewer jobs, less pay, and less creative effort on their part.
The suit comes one day after a lawsuit filed by California and 11 other US states to halt the merger further muddied one of the largest media deals in recent years.
WGA urges caution in the face of less competition
The WGA argued in its complaint that the combined company after the deal would be a threat to the economic and creative vitality of the American entertainment industry, by eliminating competition in the production of film and television writing.
The union says a joint Paramount-Warner Bros. firm might be able to further devalue writers’ wages, make jobs less desirable and create fewer and less diverse works.
Read more: Netflix to buy Warner Bros. Discovery in massive $83 Billion deal
The guild has also warned that consolidation would most likely lead to massive job cuts in an industry that has seen many layoffs and restructurings in recent years.
The WGA is seeking to invalidate the approval of the transaction by the US Department of Justice in the suit.
Rising regulatory pressure on mergers
The Ellison family, who own the famous CBS News studio, CNN, and are close friends of US President Donald Trump, would have a major stake in the company’s content business, including CBS News, CNN, Paramount Pictures, Warner Bros., Paramount+ and HBO Max.
Paramount has stated that the deal will make it a more formidable player against Netflix, Amazon, and Apple’s streaming services.
The company has also committed to releasing at least 30 theatrical movies every year that will have a minimum run of 45 days.
The tie-up is also under review in the United Kingdom and the European Union, where it hasn’t yet been cleared.
Also read: Paramount sues Warner Bros in bid to derail Netflix merger
