Two Hollywood Unions Break Ranks and Urge California to Settle the Paramount–Warner Bros. Merger
Two of Hollywood's largest unions want California to settle its antitrust lawsuit against the Paramount–Warner Bros. Discovery merger rather than fight it in court. The Directors Guild of America and IATSE — the union representing behind-the-camera crew — sent a letter on 13 August 2026 to California Attorney General Rob Bonta and Paramount Skydance CEO David Ellison, urging both sides to reach a deal that includes conditions to protect competition.
The unions' argument is simple: prolonged uncertainty is bad for the industry and its workers. The letter, first reported by Variety, says the legal limbo around the proposed merger is doing damage while the case drags on.
That puts the DGA and IATSE directly at odds with the Writers Guild of America, which has filed its own separate antitrust suit seeking to block the deal entirely.
Bonta led a coalition of 12 state attorneys general in filing suit in July 2026 to stop the merger, which his office characterised as a $110 billion deal. The states argue the combination creates illegal consolidation in basic cable and theatrical distribution — the markets that decide which films reach cinemas and which channels land on your television package. Judge Araceli Martinez-Olguin issued a temporary restraining order pausing the merger and set a trial date of 2 March 2026, four months later than Paramount had wanted (Variety; California OAG).
The disagreement is not just about whether the merger happens. It is about what a settlement should look like. Bonta has said he is not interested in behavioural remedies — promises like releasing 30 films a year in cinemas with a 45-day window before streaming. He wants a structural solution, which Paramount has so far refused to consider (Variety).
Tensions between Bonta and Ellison have spilled into public view. Bonta called Ellison's threat to move Paramount out of California "blackmail," according to Fox40. The merger has also drawn political attention: in May 2026, Representative Friedman led 34 California members of Congress in a letter supporting Bonta's review of the deal (Rep. Friedman's office).
The exhibition industry is split down the middle. Regal Cinemas and AMC Theatres, the two largest cinema chains in the United States, have endorsed the merger. Cinema United, the trade group representing theatre owners, opposes it (Variety). An opposition coalition including the Democracy Defenders Fund praised the 12-state lawsuit when it was filed (Democracy Defenders Fund).
What makes the DGA–IATSE letter notable is the fault line it exposes among the guilds. The writers want the deal stopped. The directors and crew want it resolved. Both camps are arguing from the same place — concern for their members' livelihoods — but they have landed on opposite sides of the question. For the crews of two hundred who depend on a production calendar that keeps running, the difference between "block it" and "settle it" is not academic. It is the difference between a slot on the schedule and none at all.
The case now heads toward a March trial unless the two sides find a settlement first.
