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

The International Brotherhood of Teamsters, the union that represents warehouse workers, drivers and a diverse set of other workers, has spoken out against Paramount Skydance’s merger with Warner Bros. Discovery. In a press release, the Teamsters announced that it had submitted a report to the Antitrust Division of the U.S. Department of Justice, raising concerns about the impact of the deal, and urging the DOJ to intervene in the merger.

“This merger threatens the livelihoods of the workers who made these studios 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 paying the price. The DOJ has a responsibility to stop deals that eliminate competition and harm working families. Unless Paramount and Warner Bros.

The Teamsters’ main concern is how the merger of the two companies will consolidate power and eliminate jobs in the process. “Previous mergers have a well-documented history of harming workers: Disney’s acquisition of 20th Century Fox in 2019 led to the elimination of production units, significant job losses and the cancellation of projects,” the union said. Motion Picture Teamsters, the Hollywood-focused division of the union that transports the equipment, props and crew members that make productions possible, is likely to be hardest hit.

The high likelihood that the merger will impact market competition is why the Teamsters expect the DOJ to intervene, or in the event that Paramount and Warner Bros. are unable to provide “enforceable commitments to increase and maintain domestic production, strict labor standards, and guarantees against layoffs and the erosion of union jobs”, block the agreement entirely.

Engadget asked the Teamsters union what it plans to do if the Justice Department doesn’t intervene. We will update this article if we receive a response.

If Warner Bros. is allowed to eat up, Paramount Skydance has committed to producing 30 theatrical films per year, split equally between the two studios. The bigger problem is that the company’s bid to acquire the studio is based on the idea that it will quickly meet the requirements of government regulators. Paramount Skydance CEO David Ellison is the son of Oracle co-founder Larry Ellison, who is known for his close ties to President Donald Trump and has previously received preferential treatment from the administration. There is a real possibility that Paramount’s new merger could also happen, regardless of the Teamsters’ concerns.