California Pressured By Two Hollywood Unions to Settle Paramount-Warner Bros. Lawsuit

by | Aug 13, 2026 | Entertainment

California Pressured By Two Hollywood Unions to Settle Paramount-Warner Bros. Lawsuit

The Directors Guild of America and IATSE have called on California Attorney General Rob Bonta and Paramount Skydance CEO David Ellison to reach a settlement in their pending antitrust litigation, arguing that the extended timeline is creating hardship for industry workers.

In a letter issued Thursday, union leaders Russell Hollander of the DGA and Matthew Loeb of IATSE stated that productions are already being placed on hold or canceled as the two companies prepare for a scheduled trial in March 2027. The unions, which collectively represent approximately 200,000 entertainment industry workers, contended that prolonged uncertainty surrounding the proposed merger is causing particular damage at a time when employment opportunities are already limited, especially in the Los Angeles region.

The unions requested either a negotiated settlement that addresses anti-competitive concerns or an earlier trial date to reduce the period of uncertainty. While acknowledging that previous mergers have provided minimal benefits to workers, the labor leaders expressed openness to the deal if accompanied by enforceable conditions. They proposed keeping Paramount and Warner Bros. as separate entities, maintaining them as active marketplace participants, committing to maintain U.S. production at historical levels, and keeping Paramount’s headquarters in Los Angeles.

The DGA and IATSE’s approach places them at variance with other labor organizations. The Writers Guild of America has actively opposed the $111 billion proposed merger and filed suit to block it, while SAG-AFTRA has expressed opposition absent “enforceable safeguards.” The Teamsters previously urged the Department of Justice to block the deal unless worker protections were implemented, though the department did not take that action.

The union leaders framed their position as aimed at protecting workers while maintaining a competitive marketplace for film and television production that serves both consumers and creators.

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