David Ellison’s Threat to Move Paramount ‘Proves the Danger’ of Warner Merger, Writers Guild Says

The Writers Guild of America (WGA) has condemned Paramount CEO David Ellison for threatening to relocate Paramount from California if Attorney General Rob Bonta does not agree to a settlement in their legal challenge against the merger between Paramount Skydance and Warner Bros. Discovery. The guild believes this act of defiance highlights the dangers of the company's immense power over the industry and the potential consequences for writers and the creative community.

The WGA's lawsuit, filed in response to Bonta's own, argues that the merger would primarily harm writers by limiting their options for producing screenplays and TV show pitches. This lawsuit, separate from the AGs' case, focuses on the merger's potential to reduce competition in theatrical and cable TV markets, as well as raise the level of concentration around wide release and blockbuster films.

Paramount's trial with Bonta is scheduled for next March, but both parties have engaged in a public battle over the issue. While Paramount has gathered support from other CEOs like Regal's Eduardo Acuna and Endeavor's Ari Emanuel, the company's general counsel, Makan Delrahim, dismissed Bonta's claim that Ellison's consideration of moving the studio was "blackmail."

Despite Bonta's open-mindedness to negotiating structural remedies with Paramount, he does not consider the studio's pledge to release 30 films annually as sufficient.