Both the west and east branches of the Writers Guild of America have issued a statement indicating they will work to try and block a studio mega-merger between Warner Bros. Discovery and Paramount Skydance.
Warner Bros. Discovery has reportedly rebuffed at least three offers from directly from the David Ellison-led Paramount to acquire the studio.
The two branches of the writers union said in a statement on Thursday that a merger between Warner Bros. Discovery and any other major studio or streamer would be ‘a disaster’:
“Merger after merger in the media industry has harmed workers, diminished competition and free speech, and wasted hundreds of billions of dollars better invested in organic growth. Combining Warner Bros. with Paramount or another major studio or streamer would be a disaster for writers, for consumers, and for competition. The WGAW will work with regulators to block the merger.”
Breathless and rampant speculation about a potential acquisition has rocketed WBD’s stock price in recent weeks. On Tuesday, the company said it is reviewing “strategic alternatives to maximise shareholder value”, which has been translated as meaning that they are potentially for sale.
The company also indicated it has received ‘unsolicited interest’ from ‘multiple parties’, though Paramount appears to remain in the driver’s position due to little in the way of hurdles to such a merger, along with support from none other than the White House, according to The New York Post.
A senior Trump admin official told the outlet: “Who owns Warner Bros. Discovery is very important to the administration. The Warner board needs to think very seriously not just about the price competition, but which player in the suitor pool has been successful in getting a deal done. And that points to the Ellisons.”
Source: THR
