The Writers Guild of America fired back at Los Angeles Mayor Karen Bass on Thursday after she expressed support for a settlement in the Paramount-Warner Bros. Discovery merger lawsuit.
Bass joined other Democratic officials, including Gov. Gavin Newsom and his likely successor, Xavier Becerra, in urging negotiations in the antitrust lawsuit seeking to foil the $110 billion deal. California Attorney General Rob Bonta, who is leading the action taken by 12 states in parallel with a suit filed by the WGA, has indicated no willingness to engage in talks with Paramount.
That’s not a surprise given the series of legal wins he has notched in the case over the past several weeks, including the setting of the trial date for next March, far later than Paramount requested. The company is due to start paying WBD shareholders a “ticking fee” of $650 million per quarter if the deal has not closed by September 30.
“We are disappointed that Mayor Bass has chosen to join Paramount’s pressure campaign on public enforcers, to push through a merger that is being rightfully challenged as illegal and will lead to job losses in the entertainment industry,” the WGA asserted, adding that she spoke after a report to the L.A. County Board of Supervisors estimated that “thousands of jobs will be lost if the merger proceeds.”
Bass made the comments earlier Thursday during a news conference (watch a clip of it above). “While there are varying perspectives on the proposed transaction, today we are united around one clear message: It is time for all parties to come to the table,” she said. “The continued uncertainty is not good for workers, it’s not good for production, and it’s not good for the future of this industry. Too many productions in L.A. are now at a standstill, which means Angelenos are out of a job and they’re not getting paid. As mayor, I cannot stand by and watch as the job security of thousands of hard-working union members is put at risk.”
Paramount CEO David Ellison and other members of his management team have been actively looking at options to move the company out of its longtime home in L.A. The possible move, unthinkable for legacy studios but in keeping with exits by businesses in other sectors, has only stiffened opposition to the merger in some corners. At the same time, as Deadline detailed at length on Thursday, others inside the company and across Hollywood say reaching a settlement would be preferable to letting the process grind along for months as the industry keeps evolving at breakneck speed.
Bass highlighted the risk of statis, laying out her thoughts the day after participating in a mayoral debate which lacked any significant discussion of the entertainment business or the pending Paramount-WBD transaction. Also on Wednesday, a report submitted to the L.A. County Board of Supervisors projected that the merger would result in the loss of thousands of jobs. Paramount has promised investors it will deliver $6 billion in cost savings related to the merger, but executives have insisted that layoffs will not be a key method of reaching that target.
“Industry workers deserve a mayor who believes in upholding the law and protecting the working people of Los Angeles, not serving the interests of powerful corporations,” the WGA statement continued. “Paramount has created a false choice for entertainment industry workers: The company argues that enforcing antitrust law hurts us by creating uncertainty, which is of their own making as the company attempts to dominate the industry. We reject the claim that beleaguered industry workers must choose the possibility of a job today, in exchange for the certainty of job losses tomorrow.”
Bass, reading from prepared comments, insisted her statement is “not about taking sides – this is about fighting for Los Angeles, standing up for our union workers, keeping Paramount here and protecting the future of this industry.”
A settlement, Bass added, must include “meaningful and enforceable commitments” to keep Paramount and Warner Bros. Discovery in L.A. as well as maintaining jobs, productions and investments in L.A. and in California.”
