Hollywood Figures Rally Against Proposed Paramount Skydance–Warner Bros. Discovery Merger

The signatories expressed concern that the merger would intensify consolidation within the media sector, potentially limiting competition and creative opportunities. “This transaction would further consolidate an already concentrated media landscape, reducing competition at a moment when our industries—and the audiences we serve—can least afford it,” the group wrote in the letter.

The opposition comes after Paramount Skydance CEO David Ellison reached an agreement in late February to acquire Warner Bros. Discovery, beating out rival interest from Netflix for control of a major media portfolio. The acquisition would combine assets including a historic film studio, HBO, and multiple cable networks such as CNN.

In their letter, industry professionals warned of far-reaching consequences if the deal proceeds. “The 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. Alarmingly, this merger would reduce the number of major U.S. film studios to just four,” the signatories added, according to NBC News.

The list of those opposing the merger spans actors like Glenn Close and Ben Stiller, filmmakers such as Yorgos Lanthimos and Denis Villeneuve, and writers including David Chase. Collectively, they argue that industry consolidation has already led to significant structural challenges.

Related: DOJ Issues Subpoenas in Paramount–Warner Bros. Discovery Merger Probe

“Media consolidation has accelerated the disappearance of the mid-budget film, the erosion of independent distribution, the collapse of the international sales market, the elimination of meaningful profit participation, and the weakening of screen credit integrity,” the letter stated. “Together, these factors threaten the sustainability of the entire creative community,” the group continued.

Despite the criticism, Paramount Skydance defended the merger in a statement, acknowledging concerns while emphasizing its commitment to creators. “We hear and understand the concerns that some in our creative community have raised and respect the commitment to protecting and expanding creativity,” the company said.

The studio also reaffirmed plans to release at least 30 high-quality films annually with full theatrical runs and to maintain independent creative leadership across its brands. “We understand the concerns raised as a result of the disruptions caused to our industry by COVID, entry of big-tech, and changes in consumer behavior, but we promise this: Paramount remains deeply committed to talent, and this merger strengthens both consumer choice and competition, creating greater opportunities for creators, audiences and the communities they live and work in,” the company added.

The open letter was organized by advocacy groups including the Committee for the First Amendment, led by Fonda. She warned that the proposed deal “would be one of the most destructive threats to free speech and creative expression in our history.”

Source: NBC News