Writers Guild sues to block Paramount deal saying it would hurt writers
PSKY•Writers Guild files lawsuit over Paramount acquisition
The Writers Guild of America sued to block Paramount's $110 billion acquisition of Warner Bros. Discovery on Tuesday, alleging the deal would unlawfully decrease competition for screenwriting services for film and television.
The case adds to Paramount's legal woes a day after California and a group of 11 states sued to block the deal.
A spokesperson for Paramount did not immediately respond to a request for comment.
Guild says deal would reduce buyers for films and TV shows
While the states focused on film and television distribution, the Writers Guild said that by reducing the number of buyers in Hollywood for films and TV shows, the deal would harm its members.
“With fewer competitors, the merged Paramount-Warner Bros entity would have both the incentive and the ability to lower costs by suppressing writers’ wages and reducing output. Writers will be paid less and have fewer employment opportunities,” the WGA complaint said.
