The International Brotherhood of Teamsters told the Department of Justice this week that the proposed merger between Paramount Skydance and Warner Bros. Discovery poses a direct threat to film and television workers nationwide, including nearly 15,000 rank-and-file Motion Picture Teamsters. The 1.3-million-member union submitted a detailed report to the DOJ's Antitrust Division outlining these concerns and is urging the DOJ to intervene and block the deal unless substantial and enforceable safeguards are put in place to increase domestic production and protect jobs.
Teamsters General President Sean M. O'Brien said "This merger threatens the livelihoods of the very workers who built these studios into industry giants. We've seen what happens when corporations consolidate power: jobs disappear, production leaves American communities, and workers pay the price. The DOJ has a responsibility to stop deals that eliminate competition and harm working families. Unless Paramount and Warner Bros. can guarantee enforceable protections for domestic production and labor standards, this merger can't be allowed to move forward."
The merger would consolidate two of the five major studios in Hollywood and combine streaming platforms HBO Max and Paramount+, further concentrating decision-making power in an industry already dominated by only a few corporations. The union's primary concern centres on job losses and the erosion of working conditions. Disney's 2019 acquisition of 20th Century Fox resulted in eliminated production units, significant job losses, and canceled projects, the Teamsters noted, citing this precedent as a cautionary example.
Motion Picture Teamsters, the division of the union concentrated in Hollywood that transports the equipment, props and crew members that make productions possible, stand to be most impacted. Paramount and Warner Bros. have not yet announced any enforceable merger-specific benefits to workers or standards to combat these risks and have done nothing to suggest they will.
Lindsay Dougherty, director of the Teamsters' motion picture division, said "The film and television industry has been in a fragile and fluctuating state for the last several years and entertainment workers are simply trying to survive through that instability. Another mega-merger is the last thing this industry needs."
The union's objection comes as antitrust experts do not expect regulators in the U.S. or abroad to block the deal, though the approval process will likely be long and cumbersome. The DOJ is not believed to ultimately sue to block the deal. Paramount Skydance said it has "no statutory impediment" in the US to closing its proposed $77.9 billion acquisition of Warner Bros. Discovery after clearing a US antitrust hurdle.
Teamster general president Sean O'Brien is a labor ally of President Donald Trump and previously played a role in the nomination of Lori Chavez-DeRemer as Labor secretary. Whether O'Brien's opposition could sway Trump, who has his own relationship with Paramount CEO David Ellison and his billionaire father Larry Ellison, is another question.
In an interview with CNBC, Paramount CEO David Ellison pointed to an increase in the film slate since Skydance took control of that studio. He also has told analysts that under its new ownership, Warner Bros. would release 15 films per year. "Our deal is pro-competitive and good for the creator and good for creators," Ellison said.
The $111 billion merger has a long way to go and many "regulatory hurdles" to cross before it is truly a done deal, according to California Attorney General Rob Bonta. "Whenever there's major corporate consolidation like this, there's a concern that we might see increased prices, lower wages, reduction in competition, limits in choice, lower quality, all those things," Bonta said.
The Teamsters will only support a deal that includes enforceable commitments to increasing and maintaining domestic production, strong labor standards, and guarantees against layoffs and erosion of union jobs. Without such protections, the Teamsters call on the DOJ to sue to block the merger entirely.