LOS ANGELES: Thousands of Hollywood workers rallied against Paramount Skydance Corporation’s $110 billion proposed acquisition of Warner Bros.
Discovery, warning that the deal would trigger massive layoffs and further consolidate an industry still reeling from pandemic era disruptions and labor strikes. The formal “Block the Merger” event in Los Angeles, organized by the American Economic Liberties Project, drew writers, actors, crew members and small business owners. Similar rallies took place in New York and Atlanta.
The opposition follows the Feb. 27 announcement that Paramount would acquire Warner Bros. Discovery in an $81 billion equity deal, with an enterprise value of $110 billion.
Paramount will pay $31 per share in cash for all outstanding Warner shares. The boards of both companies have approved the transaction, which is expected to close by the third quarter of 2026, pending regulatory clearance and Warner shareholder approval.
Workers fear the deal will cost thousands of jobs. Paramount has confirmed plans to cut $6 billion in costs, describing the reductions as “synergies”, industry terminology for eliminating overlapping roles.
“We feel confident in our $6-billion number after doing due diligence extensively with Warner Bros.,” Paramount Chief Operating and Chief Strategy Officer Andy Gordon told Wall Street analysts.
Warner Bros. Discovery employs approximately 35,000 people, including about 7,500 in production roles. Paramount employed nearly 20,000 workers in August 2025 before laying off roughly 1,000 and announcing plans to cut 1,000 more.
Employees at both companies have described the anticipated layoffs as a “bloodbath,” according to trade publications. A Paramount employee told media there were “wordless screams” at the company’s Los Angeles office when the news broke.
“Think about the bloodletting of thousands of employees at CBS and Paramount, and now it will be more. Just awful,” an industry insider told Variety.
The International Brotherhood of Teamsters, representing 1.3 million members nationwide, has submitted a formal report to the Justice Department’s Antitrust Division opposing the merger. The union said the deal threatens nearly 15,000 Motion Picture Teamsters.
“This merger threatens the livelihoods of the very workers who built these studios into industry giants,” Teamsters General President Sean M. O’Brien said. “We’ve seen what happens when corporations consolidate power: jobs disappear, production leaves American communities, and workers pay the price.”
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The Teamsters said they would support the deal only if Paramount agrees to enforceable commitments on domestic production levels, labor standards and guarantees against layoffs. The Writers Guild of America also opposes the deal, noting the merged company would become the largest employer of its members.
More than 4,000 performers signed an open letter against the merger, led by actress and political activist Jane Fonda, who warned the deal would shrink competition “at a moment when our industries and the audiences we serve can least afford it.”
Sen. Cory Booker, D-N.J., delivered a 13-minute video critique titled “Warner Bros-Paramount Merger, the Corporate Propaganda Monopoly: Ellison Media Cartel.”
The merger would place CNN and CBS News under the control of the Ellison family, which maintains close ties with President Donald Trump. David Ellison, chairman and CEO of Paramount, controls the company along with his father, Oracle founder Larry Ellison.
The Justice Department has subpoenaed documents from both companies as part of an antitrust review. Although the mandatory waiting period under the Hart-Scott-Rodino Antitrust Improvements Act expired Feb. 19, the DOJ retains the power to challenge the merger. Analysts say the review could delay completion by up to a year.
If the deal closes, the U.S. entertainment industry would be dominated by a “Big Four” of conglomerates. Paramount’s legal team argues the deal is pro-consumer and strengthens Hollywood’s role against tech and streaming giants.
A regulatory termination fee of $7 billion would be paid by Paramount if the deal collapses due to a failure to obtain regulatory approval.
