A number of influential figures in Hollywood have signed a petition to oppose the large-scale merger between two long-established Hollywood studios – Warner Bros. Discovery and Paramount Skydance.
According to international media, an open letter signed by numerous influential figures in Hollywood was released on April 13th, protesting the planned acquisition of the historic Warner Bros. Discovery studio by rival Paramount Skydance.
Over 1,000 people signed a petition opposing the large-scale merger between two long-established Hollywood studios, with several prominent figures including two-time Oscar winner Jane Fonda, actor Joaquin Phoenix (starring in “Joker” 2019), directors JJ Abrams (behind blockbusters like “Mission: Impossible III” 2006 and “Star Trek” 2009), and Denis Villeneuve (director of the hugely successful “Dune” series), including “Dune: Part One” 2021 which won six Oscars in 2022.
The open letter stated that the deal would further increase the already high level of concentration in the media market, undermining competition at a time when the industry and audiences "cannot tolerate any more pressure."
Mergers can lead to fewer opportunities for creators, job losses across the entire production ecosystem, increased costs, and a narrower audience choice in the US and globally.
In February, Paramount Skydance, the company run by David Ellison, announced plans for a $111 billion acquisition of Warner Bros., the owner of blockbuster franchises such as “Harry Potter,” “The Lord of the Rings,” and “Game of Thrones.” This offer beat out a competing bid from Netflix, which some industry insiders considered a “less disadvantageous” option.
Many in the industry are concerned that the merger of the two studios will lead to cost-cutting measures, especially since this large deal is expected to be financed by debt, forcing the new owners to cut costs. These cuts are believed to affect not only the creative team but also tens of thousands of behind-the-scenes workers such as makeup artists, set designers, drivers, catering staff, and floristers in the Los Angeles area.
The open letter warned that the merger could reduce the number of major American film studios to just four, while the industry is already under considerable pressure from previous waves of influence, with a noticeable decline in the number of films produced and released.
The signatories emphasized that competition is essential for a healthy economy and institutions, and argued that the "centralization" of media has undermined one of America's most important global industries.
For its part, Paramount Skydance – which reportedly has the backing of US President Donald Trump – has pledged to maintain a steady pace of film releases.
In an announcement on April 13, Paramount stated: “We understand the concerns arising from the disruptions the industry is facing due to the COVID-19 pandemic, the involvement of major technology corporations, and changes in consumer behavior. However, we are committed to Paramount’s commitment to its creative team, and this merger will expand both consumer choice and competition, thereby creating more opportunities for creators, audiences, and the communities where they live and work.”
The studio stated that it will ensure the production of a minimum of 30 high-quality feature films each year, with full theatrical release dates.