CALIFORNIA – The proposed $111 billion merger between Paramount Skydance and Warner Bros Discovery has exposed a growing divide among Hollywood’s major labour unions, with groups taking different positions over how the deal should be handled.
The antitrust trial over the proposed merger has been scheduled for March 2027. The lengthy timeline has raised concerns among unions whose members have already faced a sharp decline in production work following the Covid-19 pandemic, the 2023 Hollywood strikes and subsequent cuts in content spending.
The Directors Guild of America (DGA) and IATSE, which represents a wide range of film and television crew workers, have urged California Attorney General Rob Bonta and Paramount Skydance chief executive David Ellison to reach a settlement.
In a letter sent to Bonta and Ellison, DGA president Russell Hollander and IATSE international president Matthew Loeb warned that the current timetable could further damage an industry already struggling to recover.
They also called for the antitrust proceedings to be expedited if a settlement cannot be reached.
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Unions take different positions
The position of the DGA and IATSE contrasts sharply with that of the Writers Guild of America (WGA).
The WGA has supported the lawsuit brought by state attorneys general seeking to challenge the merger. It has also filed its own legal action aimed at stopping the transaction.
The writers’ union argues that combining Paramount and Warner Bros Discovery would reduce competition among major buyers of film and television writing.
According to the WGA, fewer major studios could lead to lower compensation, less favourable contract terms and a reduction in the volume and diversity of programming.
SAG-AFTRA has taken a position somewhere between the two camps.
The actors’ union has backed the state regulators’ antitrust case and opposed the merger unless enforceable safeguards are introduced. It has called for guarantees that protect production levels and ensure a greater share of productions remain in the United States.
The Teamsters have also previously called for the deal to be blocked unless specific conditions are met.
Hollywood production downturn
The divisions come as Hollywood continues to deal with the effects of a prolonged production slowdown.
The Covid-19 pandemic was followed by the 2023 strikes by writers and actors. Major studios subsequently reduced content spending, while more production moved outside California and, in some cases, outside the United States.
These changes have hit workers who depend on film and television productions particularly hard.
IATSE has reported that the number of hours worked by its members in 2025 was nearly 36 per cent lower than in 2022.
The DGA has also seen a significant decline in employment among its members since 2022, according to a union source cited by The Hollywood Reporter.
While the guild is associated with prominent directors, its membership also includes unit production managers, assistant directors, associate directors and stage managers.
For these workers, another period of uncertainty could translate into fewer production opportunities.
| Key detail |
Information |
| Proposed merger |
Paramount Skydance and Warner Bros Discovery |
| Reported value |
$111 billion |
| Antitrust trial |
Scheduled for March 2027 |
| DGA position |
Supports a settlement or an expedited trial |
| IATSE position |
Urges a settlement or expedited proceedings to reduce uncertainty for workers |
| WGA position |
Opposes the merger and has filed a lawsuit seeking to block the deal |
| SAG-AFTRA position |
Opposes the deal unless enforceable safeguards for workers and US production are introduced |
| Teamsters position |
Has called for the deal to be blocked unless specific conditions are met |
| IATSE employment impact |
Hours worked by members in 2025 were nearly 36% lower than in 2022 |
| Main concern |
Further production cuts, job losses and reduced opportunities for Hollywood workers |
| Central disagreement |
Some unions fear the long-term impact of reduced studio competition, while others are focused on immediate production and employment losses |
Why the WGA sees the merger differently
Writers face a different set of challenges from production crews.
Although the WGA has experienced a decline in employment following the 2023 strike and reductions in studio spending, writers are less directly dependent on where physical production takes place.
The guild is instead focused on the long-term impact of reducing the number of major studio buyers.
The proposed transaction would effectively reduce the number of major Hollywood studios from five to four, according to arguments made by the WGA in its lawsuit.
The union believes that reduced competition could weaken writers’ bargaining power and affect both their incomes and creative opportunities.
The WGA has also developed a reputation for taking a more confrontational approach in disputes with Hollywood companies. Its recent battles have included the 2019 dispute with talent agencies and the 2023 strike over issues including compensation, streaming economics and artificial intelligence.
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DGA and IATSE seek certainty
The DGA has traditionally favoured a more measured approach to labour disputes.
The guild has often relied on negotiations and private discussions rather than public confrontation. Its current position reflects concerns that another prolonged period of uncertainty could further damage employment opportunities for its members.
IATSE appears to share those concerns.
The crew union has taken a tougher stance in recent labour disputes, but its members have also been among those most affected by the recent production downturn.
For workers already struggling to find regular employment, another disruption could be particularly damaging.
Safeguards remain a key issue
Despite their differences, the unions are not necessarily endorsing the merger itself.
The DGA and IATSE have acknowledged that mergers have historically provided limited benefits to workers. Their immediate concern, however, is the impact of prolonged uncertainty on employment.
SAG-AFTRA and the Teamsters have similarly indicated that they could accept a settlement if it included binding commitments to protect production and workers.
Teamsters motion picture division head Lindsay Dougherty has questioned Paramount Skydance’s claims that the merger would benefit workers, particularly as Ellison has threatened to move the company’s headquarters out of California if the dispute is not resolved by Oct 1.
The competing positions highlight the difficult choices facing Hollywood’s labour movement.
For some unions, the biggest threat is the long-term reduction in the number of major studios. For others, the immediate priority is restoring production and protecting jobs.
As the legal battle over the Paramount-Warner Bros merger continues, Hollywood’s unions are therefore united in their concern about workers — but increasingly divided over how best to protect them.
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Key points:
- The proposed $111 billion Paramount Skydance-Warner Bros Discovery merger has divided major Hollywood unions.
- The Directors Guild of America (DGA) and IATSE are urging California officials and Paramount chief David Ellison to seek a settlement or expedite the antitrust trial.
- The Writers Guild of America (WGA) is backing efforts to block the merger and has filed its own lawsuit.
- SAG-AFTRA opposes the deal unless enforceable guarantees are introduced to protect production and jobs in the United States.
- Unions representing production workers say prolonged uncertainty could further deepen Hollywood’s employment crisis.
