WGA Slams David Ellison’s Threat to Pull Paramount From California

Paramount Skydance CEO David Ellison has faced sharp criticism from the Writers Guild of America following his threat to relocate the historic studio away from California if state AG Rob Bonta declines to settle an antitrust lawsuit aimed at stopping the proposed merger with Warner Bros. Discovery.

WGA Condemns David Ellison’s California Exit Threat Over Antitrust Lawsuit

According to a statement issued to Deadline on Tuesday afternoon, the Writers Guild of America criticized the executive’s ultimatum. “By threatening to leave the state because it doesn’t want the government to enforce the law, Paramount further proves the danger of its outsized power over the industry and what that will mean for writers and the creative community,” the guild stated. The organization added that “This type of behavior is precisely why the merger should be blocked.”

The studio’s leadership delivered the exit threat to top executives during a meeting last week, according to verified reporting. David Ellison stated that he will start the process of exiting California on October 1 unless Bonta negotiates a settlement to clear the $110 billion media acquisition.

Legal Battles and State Opposition to the Paramount-WBD Merger

The conflict centers on a massive $110 billion acquisition between Paramount and Warner Bros. Discovery. California Attorney General Rob Bonta, joined by a group of 20 state Attorneys General, filed an antitrust lawsuit to halt the transaction. Bonta responded directly to Ellison’s ultimatum, characterizing the move as “another attempt to blackmail the state into letting an illegal deal through,” according to public statements.

The trial for the state antitrust case is scheduled to go to trial in federal court in the Northern District of California March 2027. Meanwhile, the timeline carries financial pressure for the studio. Because the transaction will miss its deadline, Paramount faces a daily financial penalty beginning October 1, wherein a $7 million daily ticking fee outlined in the WBD deal terms begins to accumulate, leading the corporation to request a November trial schedule from the judge.

Writers Guild Files Separate Federal Lawsuit Over Labor Concerns

Alongside the state-level litigation, the WGA East and West launched their own independent legal challenge. To halt the $110 billion merger, labor unions launched a joint federal antitrust complaint in the Northern District of California, arguing the transaction breaches federal competition statutes and inflicts direct damage upon writers.

Instead of joining forces with Bonta and twenty other state Attorneys General, the writers chose to launch an independent legal challenge focused specifically on labor issues outside the scope of the AGs’ lawsuit, though both related matters have been assigned to the same judge.

Frequently Asked Questions

Why is the Writers Guild of America suing Paramount and Warner Bros. Discovery?

Asserting that the $110 billion merger violates federal antitrust legislation and creates direct harm for writers, the WGA initiated a federal antitrust lawsuit in the Northern District of California to stop the acquisition.

What did David Ellison threaten to do regarding California?

When is the antitrust trial scheduled to begin?

The antitrust lawsuit brought by California Attorney General Rob Bonta and other state AGs is set to go to trial in federal court in the Northern District of California March 2027.