A constellation of stars are lining up against Paramount\u2019s proposed takeover of Warner Bros. Discovery, expressing fears the blockbuster merger would devastate the industry and shrink production jobs. <\/p>\n
The letter was signed by nearly 1,000 artists and movie creators, including such big names as Ben Stiller, Bryan Cranston, Noah Wyle, Joaquin Phoenix, Kristen Stewart and Jane Fonda, whose Committee for the First Amendment helped organize the campaign. <\/p>\n
\u201cThis transaction would further consolidate an already concentrated media landscape, reducing competition at a moment when our industries \u2014 and the audiences we serve \u2014 can least afford it,\u201d according to the letter. \u201cThe result will be fewer opportunities for creators, fewer jobs across the production ecosystem, higher costs, and less choice for audiences in the United States and around the world.\u201d<\/p>\n
Paramount, in a statement, pushed back against the artists\u2019 concerns. Tech scion David Ellison and his team believes the blockbuster deal makes sense \u2014 particularly because of turmoil in the entertainment business, the company said.<\/p>\n
\u201cThis is also a moment when the industry has been facing significant disruption\u2014and the need for strong, creative-first and well-capitalized companies that can continue to invest in storytelling has never been greater,\u201d Paramount said. <\/p>\n
The Hollywood workforce has shrunk by more than 42,000 jobs between 2022 and 2024, according to a recent study. The economy has not bounced back following shutdowns due to the COVID-19 pandemic, followed by the twin labor strikes three years ago. <\/p>\n
Thousands of film workers<\/a> have been searching for work \u2014 but many of the big opportunities have moved abroad<\/a>.<\/p>\n The strikes prompted studio executives to reset their output after previously spending big to build streaming services to compete with Netflix.<\/p>\n Two other consolidations led to widespread cutbacks: Walt Disney Co.\u2019s acquisition of Fox entertainment assets in 2019, and Discovery\u2019s takeover of AT&T\u2019s WarnerMedia four years ago. <\/p>\n The resulting entity \u2014 Warner Bros. Discovery, led by David Zaslav<\/a> \u2014 instituted deep cost cuts and thousands of layoffs to cut expenses because the firm was nearly drowning in deal debt \u2014 $43 billion \u2014 from the day Zaslav took the helm. <\/p>\n Paramount\u2019s proposed takeover of Warner Bros. would result in a significantly higher debt load, $79 billion in debt, prompting concerns from the group and others about further downsizing.<\/p>\n Ellison, the 43-year-old son of billionaire Oracle co-founder Larry Ellison, is leading the effort to buy Warner Bros. Discovery to prop up Paramount,<\/a> which the family acquired in August. <\/p>\n In late February, Ellison\u2019s Paramount Skydance prevailed in a nearly six-month bidding war after Netflix unexpectedly bowed out when the elder Ellison agreed to financially back his son\u2019s $111-billion deal.<\/p>\n \u201cWe have been clear in our commitments to do just that: increasing output to a minimum of 30 high-quality feature films annually with full theatrical releases, continuing to license content, and preserving iconic brands with independent creative leadership,\u201d Paramount said, adding that such promises should ensure that \u201ccreators have more avenues for their work, not fewer.\u201d<\/p>\n Warner shareholders will be asked to approve the merger April 23.<\/a> <\/p>\n Ellison is pushing to wrap the deal up this summer.<\/p>\n \u201cWe are deeply concerned by indications of support for this merger that prioritize the interests of a small group of powerful stakeholders over the broader public good,\u201d the letter<\/a> said. \u201cThe integrity, independence, and diversity of our industry would be grievously compromised. Competition is essential for a healthy economy and a healthy democracy. So is thoughtful regulation and enforcement.\u201d<\/p>\n The group urged California Atty. Gen. Rob Bonta and his fellow state attorneys general to sue to block the transaction. <\/p>\n Bonta has told The Times that his office is reviewing the transaction to see if it violates antitrust rules. Two historic movie studios, several streaming services and dozens of cable channels would be brought under one roof.<\/p>\n \u201cMedia consolidation has already weakened one of America\u2019s most vital global industries,\u201d the group said, \u201cone that has long shaped culture and connected people around the world.\u201d<\/p>\n