SAG-AFTRA Opposes Paramount/Warner Merger in New Statement; Read Here

SAG-AFTRA's National Board has stated that the fusion between Paramount Skydance and Warner Bros. Discovery shouldn't proceed on current terms due to the absence of "enforceable safeguards against reduced production by the studios with guarantees of increases in the percentage of productions made in the U.S.". 

The statement was jointly written by president Sean Astin and executive director Duncan Crabtree-Ireland, confirming that the union won't approve the deal until both companies guarantee that the merger won't violate the Clayton Antitrust Act, which regulates anti-competitive business practices.

Aside from the public support, SAG-AFTRA isn't going as far as joining Writers Guild of America (WGA)'s lawsuit, which remains on hold after Paramount formally agreed in court not to finalize the merger until the claims under the Clayton Antitrust Act are adjudicated.

"We acknowledge that there are other demands that could be made as a part of this process. We have concluded that at this time, those issues are best addressed by other advocates while we focus specifically on the very real economic impact on our members and other industry workers", the statement said. 

As Variety reported, uncertainty within Warner Bros. is growing amid these regulatory hurdles. “I don’t pick up on resignation as much as people just wanting to know what they’re looking at. Like, are we planning for the upfront next year?” said one Warner Bros. employee.

Judge Araceli Martínez-Olguín, who is presiding over the antitrust lawsuit brought by California Attorney General Rob Bonta, noted that there is "compelling evidence" the merger violates the Clayton Antitrust Act. 

The regulatory turbulence has hit Wall Street: Paramount shares dropped 20% over fears of escalating merger costs, while Paramount Skydance shares fell 2.19% on Monday afternoon, underscoring why Ellison may be eager to prevent further delays.