More than 1,000 writers, actors and directors released an open letter on Monday morning opposing Paramount Skydance’s pending acquisition of Warner Bros. Discovery, claiming the merger would further limit competition in Hollywood’s already strained entertainment industry.
The letter, signed by Hollywood heavyweights including Bryan Cranston, Jane Fonda, Ben Stiller, Joaquin Phoenix, Emma Thompson, Jason Bateman, Lin-Manuel Miranda and Kristen Stewart, says the merger would leave just four major U.S. film studios.
The letter also warns the deal would lead to “fewer opportunities for creators, fewer jobs across the production ecosystem, higher costs, and less choice for audiences.”
“Our industry is already under severe strain, in large part due to prior waves of consolidation. We have witnessed a steep decline in the number of films produced and released, alongside a narrowing of the kinds of stories that are financed and distributed,” the letter continued.
“Increasingly, a small number of powerful entities determine what gets made — and on what terms — leaving creators and independent businesses with fewer viable paths to sustain their work.”
The letter was organized by several advocacy groups, including the Committee for the First Amendment, Future Film Coalition, Writers Guild of America, Democracy Defenders Club, the Center of American Progress and others.
“It’s simple — a combined Warner Brothers and Paramount would be disastrous for this industry,” Michele Mulroney, president of the Writers Guild of America West, said in a statement.
Mulroney continued, “The resulting media behemoth would have tremendous leverage to reduce the diversity and volume of programming and raise prices for consumers, while suppressing writer compensation and worsening working conditions across the industry. This merger must be blocked.”
Hollywood is pushing back months after Paramount and its CEO, David Ellison, announced plans to acquire Warner Bros. Discovery for $110 billion, beating Netflix after a monthslong bidding war.
In a letter to California lawmakers addressing concerns the megamerger could hurt Hollywood, Ellison said his plan to integrate the two companies would strengthen the entertainment industry and expand opportunities for actors and filmmakers.
Ellison pledged to release at least 30 films in theaters each year and maintain a theatrical window of at least 45 days, saying the plan would create “additional opportunities available for creative talent in Los Angeles.”
Paramount’s deal with Warner Bros. still faces regulatory hurdles at the Justice Department but is expected to close late this year, though Ellison said he does not anticipate any trouble from regulators.
Lawmakers have previously expressed concerns over the anticipated mega media merger — arguing the massive merger could hurt media competition and drive up consumer prices.
“Paramount/Warner Bros. is not a done deal,” California Attorney General Rob Bonta said in a statement. “These two Hollywood titans have not cleared regulatory scrutiny — the California Department of Justice has an open investigation, and we intend to be vigorous in our review.”
Sen. Adam Schiff, D-Calif., said, “The merger of two of Hollywood’s biggest studios must be subject to the highest levels of scrutiny, free from White House political influence, to determine its impact on American jobs, freedom of speech, and the future of one of our nation’s greatest exports.”
In the Hollywood-signed letter, signatories encouraged Bonta and other lawmakers across the country to continue scrutinizing the merger and to consider legal action against it.
“We are deeply concerned by indications of support for this merger that prioritize the interests of a small group of powerful stakeholders over the broader public good. The integrity, independence, and diversity of our industry would be grievously compromised,” the letter said.
It concluded, “Competition is essential for a healthy economy and a healthy democracy. So is thoughtful regulation and enforcement. Media consolidation has already weakened one of America’s most vital global industries — one that has long shaped culture and connected people around the world."