Teamsters urge DOJ to block Paramount’s Warner Bros. merger

The International Brotherhood of Teamsters, the union that covers warehouse workers, drivers and a diverse collection of other laborers, has come out against Paramount Skydance’s merger with Warner Bros. Discovery. In a press release, the Teamsters announced that it has submitted a report to the US Department of Justice’s Antitrust Division outlining its concerns about the impact of the deal, and is urging the DOJ to intervene in the merger.

“This merger threatens the livelihoods of the very workers who built these studios into industry giants,” Teamsters General President Sean M. O’Brien said in a statement. “We’ve seen what happens when corporations consolidate power: jobs disappear, production leaves American communities and workers pay the price. The DOJ has a responsibility to stop deals that eliminate competition and harm working families. Unless Paramount and Warner Bros. can guarantee enforceable protections for domestic production and labor standards, this merger can’t be allowed to move forward.”

The Teamsters are primarily concerned with how merging the two companies will consolidate power, and eliminate jobs in the process. “Previous mergers have a well-documented track record of harming workers — Disney’s 2019 acquisition of 20th Century Fox resulted in eliminated production units, significant job losses and canceled projects,” the union says. Motion Picture Teamsters, the division of the union concentrated in Hollywood that transports the equipment, props and crew members that make productions possible, stand to be most impacted.

The high likelihood the merger impacts competition in the market is why the Teamsters expect the DOJ to step in, or in the case Paramount and Warner Bros. aren’t able to provide “enforceable commitments to increasing and maintaining domestic production, strong labor standards and guarantees against layoffs and erosion of union jobs,” block the deal entirely.

Engadget has asked the Teamsters union what it plans to do if the Department of Justice doesn’t intervene. We’ll update this article if we hear back.

If it’s allowed to eat Warner Bros., Paramount Skydance has committed to producing 30 theatrical films annually, evenly split across the two studios’ slates. The larger issue is that the company’s offer to acquire the studio is predicated on the idea it will quickly pass the muster of government regulators. Paramount Skydance CEO David Ellison is the son of Oracle co-founder Larry Ellison, who’s known to have close ties with President Donald Trump, and has already benefited from favorable treatment from the administration. There’s a real possibility that Paramount’s new merger could similarly sail through, regardless of the Teamsters’ concerns.