Paramount-Warner Bros Deal Faces Teamsters Push For DOJ Block Without Workers Protection

The Teamsters in a statement said that it will only support Paramount-Warner Bros’ deal that includes enforceable commitments to strong labor standards, and guarantees against layoffs and erosion of union jobs.

• Paramount and Warner Bros. have not yet announced any enforceable merger-specific benefits to workers or standards to combat workers’ risks. 
• The group pointed out previous mergers that led to harming workers like Disney's 2019 acquisition of 20th Century Fox. 
• Without workers’ protections, the Teamsters call on the DOJ to sue to block the merger entirely. 

The International Brotherhood of Teamsters told the Department of Justice (DOJ) this week that the proposed merger between Paramount Skydance (PSKY) and Warner Bros. Discovery (WBD)  poses a direct threat to film and television workers nationwide, including nearly 15,000 rank-and-file Motion Picture Teamsters.

"This merger threatens the livelihoods of the very workers who built these studios into industry giants," said Teamsters General President Sean M. O'Brien. “Unless Paramount and Warner Bros. can guarantee enforceable protections for domestic production and labor standards, this merger can't be allowed to move forward."

The Teamsters said in a statement that it would only support a Paramount-Warner Bros’ deal that includes enforceable commitments to increasing and maintaining domestic production, strong labor standards, and guarantees against layoffs and erosion of union jobs. 

More Details

Teamsters said that the merger would consolidate two of the five major studios in Hollywood and combine streaming platforms HBO Max and Paramount+, further concentrating decision-making power in an industry already dominated by only a few corporations.

The group pointed out previous mergers that led to harming workers. Disney's 2019 acquisition of 20th Century Fox resulted in eliminated production units, significant job losses, and canceled projects.

Paramount and Warner Bros. have not yet announced any enforceable merger-specific benefits to workers or standards to combat these risks and have done nothing to suggest they will, it said. 

Paramount-WBD Deal

Paramount Skydance last week announced that it has entered into a definitive merger agreement to acquire Warner Bros. Discovery in a deal with an enterprise value of $110 billion. 

The transaction has been unanimously approved by the Boards of Directors of both companies and is expected to close in Q3 2026.

Retail Reaction

Retail sentiment around PSKY and WBD trended in ‘neutral’ and ‘bearish’ territory respectively. 

Shares of PSKY have fallen 27% year-to-date and WBD shares are down nearly 5% over the same period. 

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