RCA Telegram News California - Writers union sues to block US Paramount deal

This latest hurdle comes a day after California and 11 other states launched separate suits to block the merger.

With Tuesday's lawsuit, one of Hollywood's powerful labor unions hopes to undo the US Department of Justice's approval.

Many fear the merger will result in massive job cuts in an industry that has been under siege from consolidations and layoffs.

"The proposed Paramount-Warner Bros. merger threatens the economic and creative health of the American entertainment industry," the WGA complaint said, adding the merger "would eliminate competition for buying film and television writing, resulting in suppressed compensation, worse deal terms, and reduced programming volume and diversity."

The owners of Paramount Skydance, the Ellison family, are close to US President Donald Trump and the deal would give them control of CBS News and CNN, along with film studios Paramount Pictures and Warner Bros., and streaming platforms Paramount+ and HBO Max.

"With fewer competitors, the merged Paramount-Warner Bros. entity would have both the incentive and the ability to lower costs by suppressing writers' wages and reducing output. Writers will be paid less and have fewer employment opportunities," the Writers Guild said in its complaint.

Paramount engaged in a bidding war against Netflix to land Warner Bros., and argues the deal will create a strong rival to Netflix, Amazon and Apple.

To win support, the conglomerate has pledged to release at least 30 films a year that will remain in theaters for a minimum of 45 days.

The US legal proceedings are being watched in the United Kingdom and European Union, where regulators have yet to approve the deal.

rfo/sla/tc

Ch.Schroeder--RTC