The Directors Guild of America and IATSE sent a joint letter Wednesday to California Attorney General Rob Bonta and Paramount CEO David Ellison urging both parties to negotiate a resolution to the antitrust dispute over Paramount's proposed $110 billion acquisition of Warner Bros. Discovery, warning that prolonged litigation would harm their members.
DGA and IATSE urge Paramount, California attorney general to negotiate merger settlement
The Directors Guild of America and IATSE sent a joint letter Wednesday to California Attorney General Rob Bonta and Paramount CEO David Ellison urging both parties to negotiate a resolution to the antitrust dispute over Paramount's proposed $110 billion acquisition of Warner Bros. Discovery, warning that prolonged litigation would harm their members.
The letter, signed by IATSE president Matthew Loeb and DGA executive director Russell Hollander, asked both sides to 'engage directly with each other to negotiate a resolution that ameliorates the anti-competitive aspects of the proposed merger.' Among the conditions the unions suggested was a commitment that Paramount would remain in Los Angeles.
If a settlement cannot be reached, the unions asked that the trial date currently scheduled for March be moved up. Ellison had previously pushed for a November start date.
Paramount's board reportedly approved a plan to move its Hollywood studio out of California if Bonta does not agree to settlement talks by October 1. Ellison told senior staff last week that the company would consider relocating to Tennessee, Texas, Georgia, or another state if the attorney general refuses to engage, according to reports by Puck and Variety.
A source told the publication the letter should not be read as an endorsement of the merger. The unions stated they have 'been consistent' in their view that mergers 'historically offer few benefits to workers,' but expressed concern about the negative impact a prolonged decision would have on members and the industry.
The DGA and IATSE position puts them at odds with two other major Hollywood unions. The Writers Guild of America has filed a separate lawsuit to block the merger, which is proceeding alongside the state's case. Last month, SAG-AFTRA adopted a resolution supporting the WGA's lawsuit.
- California Attorney General Rob Bonta's response to the DGA-IATSE letter is not included in the source.
- The specific antitrust conditions or remedies Bonta has sought in the lawsuit are not detailed.
- The full list of conditions proposed by the DGA and IATSE beyond the Los Angeles commitment is not provided.
- Whether Paramount has formally responded to the unions' letter is not established.
- The current status or procedural posture of Bonta's antitrust lawsuit is not described.
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