Hollywood Reacts to the Paramount Merger Settlement: ‘Layoffs Will Follow’

Hollywood reacted with shock and dismay when news of the Paramount merger settlement landed.

On Monday, news rolled in that Paramount and 12 state attorneys general agreed to a settlement, clearing the final hurdle for the $110 billion merger with Warner Bros. Discovery. It led to plenty of people taking to social media to vent about the news.

“Today, billionaires have yet again bribed, censored and bullied their way to the top,” former FTC commissioner Alvaro Bedoya said on social media. “As a result, a billionaire media conglomerate closely allied with the president will soon own one of its closest rivals, including some of the nation’s most critical news outlets. Saudi Arabia’s sovereign wealth fund will co-own those outlets, too.”

He added: “Layoffs will follow. People from L.A. to Atlanta will lose their jobs, small businesses will lose their contracts, your cable bill and movie tickets will be even more expensive. Dissent against money and power will be even harder to find.”

Plenty of people responded to Bedoya’s post in the wake of the settlement news. “Avengers: Endgame” star Mark Ruffalo – who has been vocally against the merger from the start – bounced off Bedoya’s words.

“Gavin Newsom hands huge win to Trump and his billionaire cronies,” Ruffalo said on X following the news.

“Hear hear,” filmmaker Steven DeKnight added his own cosign to Bedoya.

The agreement includes a minimum investment of at least $300 million annually in domestic TV and film production, or $1.5 billion over five years. Paramount has agreed to produce 30 films per year in the first two years of the deal, which will be upped to 32 per year in each of the following three years. At least four films per year must be independent films and at least 20% must be blockbusters. If Congress passes a federal film tax credit, Paramount agreed that 20% of all film production must be in the U.S. for the first two years of the merger and 30% of the next three.

The combined company must also establish an editorial board to monitor CNN and CBS News’ independence, which will include five established active or retired journalists who have practiced journalism for a minimum of 10 years. No more than two members may be affiliated with the same political party and members are expected to serve for three years from the date of their appointment.

The WGA responded shortly after settling their own lawsuit against Paramount Skydance opposing the Warner Bros. merger., writing, “We continue to believe the merger will cause damage to writers and the industry at large. Now that the Attorneys General have settled with Paramount, however, as a nonprofit, the WGA must contend with the reality of forging ahead alone, with no backing from government enforcers, with a complex antitrust lawsuit that would cost millions of dollars to pursue through trial.”

The statement continued: “Though we were not successful in blocking the merger, our advocacy brought more attention to the harms that this merger—and others like it—will cause. We will continue to fight the harms of industry consolidation,” the guild’s statement continued. “As the number of outlets to sell our work to and the corresponding diversity of programming shrinks, we need industry-wide structural separation between streamers and studios in order to promote competition in programming, like the Financial Interest and Syndication Rules once required in broadcast television. We will continue to fight for these goals.”

The Directors Guild of America also had their own statement released following the settlement.

“We congratulate the parties on reaching an agreement that addresses a number of critical concerns related to the Paramount/WBD merger,” the statement read. “The AG agreement contains important binding and enforceable commitments that protect theatrical film and television markets and domestic film jobs. Equally important, it brings clarity and stability to the industry during a period of decreased production.”

That statement did not sit well with some members of the DGA, however. “I vehemently disagree with my union and I’m disappointed in our board for supporting this ‘deal’ which will result in less jobs and opportunity for our membership,” director Peter Atencio wrote. “Absolute dereliction of leadership.”

SAG-AFTRA also released a statement on Monday, noting to members, “The settlement of the Attorneys General antitrust lawsuit, announced today, addresses some of our deep concerns about production levels and investment in U.S. production. We thank California Attorney General Rob Bonta, New York Attorney General Letitia James and the other attorneys general for helping to ensure our members’ interests were part of the conversation. Their advocacy is deeply appreciated.”

“We will continue to approach our relationship with Paramount with professionalism and the intention to work well together,” it added. “We hope that the process of engaging with the attorneys general has impressed upon them the fact that in addition to collective bargaining, our members rely on the law to help protect our interests. These are the lowest standards that our employers must meet. All of the companies have the opportunity to exceed their legal obligations and make additional efforts to ensure that our workplaces are healthy and that employers honor our dignity.”

The post Hollywood Reacts to the Paramount Merger Settlement: ‘Layoffs Will Follow’ appeared first on TheWrap.