WGA opposes Paramount-WB merger, calls it 'disaster for writers'
What's the story
The Writers Guild of America (WGA) has voiced its opposition to the proposed merger between Warner Bros. and Paramount, following Netflix's withdrawal from the bidding war. In a statement, the guild warned that such a merger would lead to "the consolidation of control of two major film and television studios and streaming services" and "two of the largest employers of writers."
Statement details
WGA urges the deal to be blocked
The WGA further stressed that the loss of competition due to this merger "would be a disaster for writers, consumers, and the entire entertainment industry." The guild has urged regulators to block this proposed merger. This statement comes after Netflix decided not to increase its $83 billion bid for Warner Bros. and HBO Max on Thursday.
Bid details
Paramount's latest bid declared 'superior proposal' by WBD
Paramount's revised offer of $31 per share, valuing the entire Warner Bros. Discovery (WBD), including its linear networks, at $111 billion, has been deemed the "superior proposal" by WBD. This came after Paramount Skydance explored new funding sources to make this offer following their initial unsuccessful bidding war and hostile takeover attempt. The WB-Paramount transaction is expected to close in Q3 2026.
Bid specifics
Paramount's $111 billion offer includes guaranteed payments
The $111 billion offer from Paramount Skydance includes a $45.7 billion equity commitment, which is guaranteed by Oracle CEO Larry Ellison, the father of Paramount Skydance CEO David Ellison, reported The Wrap. Additionally, it also includes a guaranteed payment of $7 billion to WBD in case regulators block the merger. This comes after Netflix faced increased scrutiny over its attempted acquisition of Warner Bros., including from state attorneys general and members of the Senate Judiciary Antitrust Committee.
Antitrust concerns
Senate Judiciary Antitrust Committee chair's statement on Netflix's withdrawal
Netflix's decision to withdraw from the bidding war was seen as a victory for consumers by some. The Senate Judiciary Antitrust Committee's chair, Republican Sen. Mike Lee, had earlier expressed serious antitrust concerns over Netflix's proposed acquisition of Warner Bros. "When a massive streaming platform consolidates even more TV shows and movies behind a single paywall, American families lose. Walking away from this deal is a win for consumers," he said in a statement Friday.