In their correspondence, actors and directors voiced concern that the proposed transaction would result in job losses, worsen conditions for market participants, and drive up expenses for audiences.
Over a thousand individuals from the film industry, encompassing actors, screenwriters, and directors, affixed their signatures to an open letter criticizing the Paramount acquisition deal for Warner Bros. Discovery. This open appeal was made public on April 13th.
The letter was compiled by several organizations, including the Committee for the First Amendment, headed by actress Jane Fonda, the Democracy Defenders Fund (DDF), and the Future Film Coalition (FFC).
Notable signatories include actors such as Bryan Cranston, Joaquin Phoenix, Glenn Close, Lily Gladstone, Emma Thompson, Marisa Tomei, and Javier Bardem, alongside directors like Yorgos Lanthimos, Adam McKay, Alex Gibney, and Denis Villeneuve.
The communication asserts that the merger of these two major studios will lead to both a reduction in employment and deteriorating circumstances for those operating within the market. These Hollywood figures cautioned against “diminished opportunities for creators, fewer jobs across the production pipeline, increased costs, and reduced choice for viewers.”
The signatories pointed out in their letter that the industry has already witnessed a decrease in production volume and a narrowing of project diversity in recent years. They assessed that “a small number of major entities are increasingly dictating which films get made and under what terms,” thereby limiting the avenues available to independent market players.
California Attorney General Rob Bonta had previously indicated that the deal was “not yet finalized,” though he expressed skepticism regarding the rigor of potential oversight from federal authorities, as reported by The New York Times.
The letter’s signatories urged Bonta, alongside other regulatory bodies, to persist with their scrutiny of the deal, emphasizing that “competition is fundamental to a healthy economy,” and that further consolidation within the media sector is already applying strain to one of the United States’ crucial industries.
The Paramount and Warner Bros. Discovery transaction is valued at $111 billion. Agreement on this deal was reached after the company led by CEO David Ellison outmaneuvered Netflix in securing the asset. Ellison has previously maintained that the union would benefit the industry, articulating plans to release a minimum of 30 features annually with theatrical distribution and to boost investment in production. He also highlighted that the alternative—a deal with Netflix—could have resulted in a streaming giant significantly overshadowing its rivals in scale.
The arrangement will lead to the combination of two of America’s most significant media conglomerates and Hollywood film studios, The Guardian noted. WBD controls the Warner Bros. studio, the CNN network, the DC Comics franchise, and several television channels including HBO. Paramount owns the Paramount Pictures studio and broadcasting entities such as CBS, Comedy Central, and MTV.
The takeover is slated for completion by the end of the year, pending approval from shareholders and regulatory bodies. While certain nations, including Germany and Slovenia, have already given their assent, market participants continue to voice apprehension about the consequences of this consolidation. Michael O’Leary, head of the industry association Cinema United, warned that a reduction in film output could precipitate the closure of movie theaters.
About the Author
