“The problem is the acquisition,” the guild said. “Not who the buyer is.”
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When news broke that Netflix had clinched an $83 billion deal to buy Warner Bros., the Writers Guild of America was among the first organizations to say the merger “must be blocked,” as did other unions that denounced the latest Hollywood mega-merger. Since that initial statement, the ground has shifted again, with the David Ellison–led Paramount launching a hostile takeover bid for the company — and the WGA is coming out against that possibility as well, Vulture has learned. “The problem is the acquisition and pending consolidation of two media giants, not who the buyer is,” a WGA representative told Vulture. “These companies should be focused on investing in their own businesses rather than wasting tens of billions to buy up the competition.”
The guild and other unions are justifiably concerned about a future where either company seizes control of Warner Bros. — especially given the billions in so-called “synergies,” a.k.a. mass layoffs, the two companies foresee in a purchase. Perpetually seen as a Hollywood disruptor, Netflix would snap up a more-traditional studio and streaming business while running its own versions of both: Its management projects $2 to 3 billion in synergies by the time the merged company turns three. Paramount, as it has more business units that would be duplicative with Warner’s, projects even more cost savings — a whopping $6 billion, the bulk of which would come from reduced headcount. (The company already laid off thousands this year in the wake of its merger with Skydance.) And both companies are cozying up to the Trump administration for regulatory favor. But as we’ve argued before, no matter who wins control of WB, workers ultimately lose.
