Hollywood biggies oppose Paramount-Warner Bros. merger in open letter
What's the story
Over 1,400 Hollywood actors, directors, and filmmakers have signed an open letter opposing the proposed merger of film studios Paramount and Warner Bros. Discovery. The letter argues that the deal, estimated at around $111 billion, would "further consolidate an already concentrated media landscape" and reduce competition at a time when the entertainment industry is still recovering from the COVID-19 pandemic and labor union strikes in 2023.
Letter details
'Fewer opportunities for creators, fewer jobs'
The letter, signed by Hollywood stars like Emma Thompson, Ben Stiller, Javier Bardem, and Rose Byrne, states that the merger would lead to "fewer opportunities for creators, fewer jobs across the production ecosystem." Other signatories include Kristen Stewart and Glenn Close. The deal would reduce the number of US film studios to four and narrow the pool of buyers and makers of film and TV shows.
Studio response
Studio defended decision in statement
Paramount Skydance, the studio behind the merger, defended its decision in a statement. It said that the deal would allow it to "greenlight more projects, support talent across...their careers," and bring stories to audiences globally. David Ellison, CEO of Paramount Skydance and son of tech billionaire Larry Ellison, has promised to keep Paramount and Warner Bros. as standalone movie studios and increase output by releasing at least 30 high-quality feature films in theaters each year.
Approval process
Merger still needs approval from shareholders, government regulators
Despite the studio's defense, the merger is still facing opposition from industry professionals. The deal was reached in late February after Netflix dropped its bid for Warner Bros. Discovery. It houses popular brands such as Looney Tunes, Harry Potter, F.R.I.E.N.D.S, HBO hits Succession and Game of Thrones, and CNN. The merger still needs to be approved by shareholders later this month and by government regulators.