Hollywood Workers and Unions Rally Against Proposed $110 Billion Paramount-Warner Bros. Merger

LOS ANGELES — Hollywood workers, union representatives, and small business owners gathered in Los Angeles on Saturday to protest the proposed $110 billion merger of Paramount Skydance and Warner Bros. Discovery. Citing fears of significant job losses and reduced competition, the rally marked the first event in a multi-city campaign aimed at blocking the deal.

The demonstration, part of a tour dubbed “Main Street vs. The Merger,” brought approximately 100 people to the Lumiere Music Hall. The event was organized by a coalition of advocacy groups and the Writers Guild of America, uniting various industry stakeholders who believe the consolidation would further damage an already fragile entertainment ecosystem.

Concerns over the merger come as the industry grapples with the lingering effects of the 2023 union strikes, shifts in consumer behavior, and a general production slowdown. According to Film LA, the non-profit that coordinates regional filming, the occupancy rate for Hollywood’s sound stages fell to 62% in the first half of 2025, a dramatic drop from the nearly full capacity reported in 2016. The International Alliance of Theatrical Stage Employees (IATSE), which represents 170,000 behind-the-scenes workers, stated its members worked approximately 36% fewer hours in the last year compared to 2022.

Comedian Adam Conover, a featured speaker at the rally, described the proposed deal as an “existential threat” to the industry. He shared his personal experience of having his television show canceled following AT&T’s 2018 acquisition of Time Warner, using it as an example of how media consolidation directly impacts creators and production teams.

The opposition extends beyond on-the-ground protests. More than 1,400 actors, directors, and filmmakers have signed an open letter voicing their “unequivocal opposition” to the merger. High-profile signatories include Emma Thompson, Ben Stiller, Javier Bardem, and Kristen Stewart. The letter argues that the transaction would shrink the number of major U.S. film studios to four, leading to “fewer opportunities for creators, fewer jobs across the production ecosystem, higher costs, and less choice for audiences.” The signatories explicitly called on California Attorney General Rob Bonta and other regulators to block the deal.

Small business owners who service the entertainment industry are also sounding the alarm. Matt Radecki, co-founder of the Los Angeles-based post-production facility Different by Design, expressed concern that the merger would reduce the number of potential buyers for content, particularly for independent and documentary films. He pointed to the Oscar-winning documentary “Navalny,” which was produced by two Warner Bros. Discovery units, HBO Max and CNN Films, as a type of project that could be jeopardized with fewer independent studios.

“The places we work with are closed... They're gone, and they're never coming back, and we don't want to see that happen to HBO or CNN or CNN Films,” Radecki told attendees.

The regulatory path for the merger remains uncertain. While some reports suggest federal antitrust officials may be poised to approve the combination—based on assurances from Paramount Skydance CEO David Ellison that the new entity would release at least 30 films annually—a coalition of states, including California and New York, is reportedly preparing a lawsuit to block it. Legal experts note that such a challenge could be based on the argument that the merger lessens competition in the labor market. Former Federal Trade Commissioner Alvaro Bedoya suggested that precedent exists for this approach, citing the successful 2022 block of Penguin Random House's bid to acquire rival publisher Simon & Schuster on similar grounds.

In response to the growing opposition, Paramount issued a statement pledging its commitment to talent and “ensuring creators have more avenues for their work, not fewer.”

While the headlines focus on Hollywood A-listers and studio giants, our experience shows that the most immediate impact of these mega-mergers is felt by the hundreds of small and mid-sized businesses that form the industry's backbone. Post-production houses, equipment rental companies, caterers, and marketing agencies all face significant risks when their largest clients consolidate. A merger of this scale inevitably leads to a search for “synergies,” which is corporate language for cost-cutting and vendor consolidation. We’ve seen this pattern before: the merged entity pressures suppliers for lower rates, extends payment terms, and eliminates redundant projects, squeezing the margins of smaller partners who lack leverage. For these businesses, the danger is not just fewer buyers for big projects but a fundamental shift in the stability and profitability of their core operations. C&S Finance Group LLC offers mergers and acquisitions advisory services to help companies navigate these turbulent conditions, whether by shoring up finances or developing new strategies. To understand how to protect your business from industry consolidation, contact us at csfinancegroup.com.

The immediate future of the proposed merger will likely be decided in the regulatory arena. All eyes are now on state attorneys general, particularly California's Rob Bonta, as they weigh a potential legal challenge that could ultimately determine whether the deal proceeds.