Could a potential Warner Bros. Discovery and Paramount merger be a "disaster"? Here's what the Writers Guild of America has to say

The biggest news is the Warner Bros Discovery (WBD) and Paramount+ merger, as the former is now up for sale. WBD has made it clear that whoever purchases the company must also take on its debts. The merger, on the one hand, is done keeping in mind the hike the companies will witness in their overall subscribers, making it almost at par with Netflix and leaving behind Disney+. However, the merger could lead to "disaster," as called out by the Writers Guild of America (West and East).

The Writers Guild of America has recently publicly opposed the merger of WBD with any other major studio, as it can lead to major job losses in the economy. The statement came after rumors that Paramount Global, led by David Ellison, made an offer to acquire WBD, offering them multiple offers. These offers have been rebuffed by WBD as of now.

Read on to know the full statement of the guild.

Here is what the Writers Guild of America has to say about the potential merger of Paramount and WBD.

The WGA publicly opposed the merger and pointed out how such mergers have "harmed the workers."

“Merger after merger in the media industry has harmed workers, diminished competition and free speech, and wasted hundreds of billions of dollars better invested in organic growth,” the union said in a statement. “Combining Warner Bros. with Paramount or another major studio or streamer would be a disaster for writers, for consumers, and for competition. The WGAW will work with regulators to block the merger.”⁠

They mentioned that this could be a "disaster" for creative and corporate departments alike and pledged that they would not let any such merger happen and would work with regulators for the same. They further stated that it would also hamper free speech as the two companies share varied ideologies. Along with this, the duplication of roles would lead to job losses, especially for the WBD employees.

Why the Writers Guild of America is opposing Paramount's acquisition of WBD?

As WBD is up for sale, any merger with a major studio would put its employees at risk. They might have to lose their jobs, especially in departments like Human Resources and Finance. This is mainly because of the duplication of the same roles. If there are 2 HRs, the company would seek to eliminate one to reduce costs.

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Moreover, the two networks come with a great set of channels, including sports, news, and entertainment, with their separate legacies. CNN, the WBD news channel, and CBS are big names in the news circuit and come with their unique voices and news formats. Such a merger would curb competition and free speech, as most WBD employees would have to readapt to the new norms of the acquiring company.

On October 21, WBD signaled that the company or some part of it is up for sale, and until now, the network has received multiple unsolicited requests, along with some big firms like Paramount interested in acquisition.

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