A preliminary injunction could push the merger beyond its Sept. 30 deadline, trigger hundreds of millions of dollars in additional payments and give opponents new leverage over one of Hollywood’s largest proposed combinations.

At a glance

  • The Writers Guild of America sued in federal court to stop Paramount’s acquisition of Warner Bros. Discovery, arguing that the combination would reduce writing jobs, suppress pay and narrow creative choice.
  • A coalition of 12 state attorneys general, led by California Attorney General Rob Bonta, filed a separate antitrust challenge and asked the court to halt the transaction temporarily.
  • The pivotal near-term decision is whether the U.S. District Court for the Northern District of California grants a preliminary injunction. A delay beyond Sept. 30 could activate a “ticking fee” estimated at about $650 million per quarter.
  • Paramount says the merger would strengthen a legacy film-and-television competitor against Netflix, Amazon and YouTube, create jobs and support a commitment to release at least 30 theatrical films annually.
파라마운트–워너 합병, 주정부와 작가들의 소송으로 ‘법적 카운트다운’
미국작가조합(WGA) 파라마운트의 워너브러더스 디스커버리 인수를 막기 위한 소송 제기. 810억 달러 규모의 초대형 미디어 합병, 법무부 승인 후 중대한 사법적 위기 직면
K-EnterTech HubJung Han

Hollywood’s megadeal has entered its most dangerous phase

Paramount’s proposed acquisition of Warner Bros. Discovery has moved from a regulatory contest into a high-stakes courtroom countdown. The Writers Guild of America, representing roughly 18,000 writers nationwide, filed suit Tuesday in the Northern District of California seeking to block the transaction. The union’s complaint followed a challenge from 12 Democratic-led states, which asked the same federal court to prevent the companies from closing while their case is litigated.

The two challenges attack the deal from related but distinct directions. The states focus primarily on competition in theatrical film distribution and basic cable, arguing that the combined company would possess greater leverage over movie theaters and television distributors and that those costs could ultimately reach consumers. The WGA emphasizes the labor market, alleging that the largest combined employer of film and television writers would have both the incentive and ability to reduce jobs and hold down compensation.