Paramount Chief Executive Officer (CEO) David Ellison told California lawmakers his commitment to keep Par and Warner Bros. separate and to produce a combined 30 films a year if they merge, saying that will help support sustained job creation across the film and creative industries.
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| (L-R) David Ellison and David Zaslav | Getty Images, Deadline |
In a letter to Sen. Adam Schiff and Rep. Laura Friedman obtained by
Deadline, he said a combined company will continue licensing content to its own and third-party platforms while remaining active buyers of content from third-party studios and independent producers. It will operate HBO independently. It will preserve the full theatrical and home video windows. The promises, which he has previously stated publicly, “will help preserve good jobs and expand opportunities for workers in California and in the United States.”
“Every one of these commitments is measurable, objective and verifiable,” he wrote in response to queries by the lawmakers around jobs, AI, competition, and working in good faith to bargain with unions as the company looks to close the WB acquisition in the third quarter.
Paramount anticipates at least $6 billion in cost savings from the deal and there’s serious angst in Hollywood that will mean heavy layoffs. The $31 a share cash deal, with an equity value of $110 billion, will saddle the combined company with significant debt. Executives have pushed back on speculation about massive job losses, insisting a significant chunk of the savings will come from elsewhere.
The guilds are concerned. Late last month, the Writers Guild of America (WGA) wrote that “The loss of competition would be a disaster for writers, consumers and the entire entertainment industry. This merger must be blocked.”
Ellison wrote that “Paramount has historically enjoyed a collaborative and respectful partnership with the unions, their leadership and its unionized workforce. Paramount values the talent, passion and hard work our union workforce dedicates to their craft and our industry.”
“We remain steadfast and committed to bargaining with all our union partners in good faith-both individually as a company and collectively with the Alliance of Motion Picture & Television Producers (AMPTP). To this end, I have already met in person with key guild and union representatives to discuss our vision for the combined company and the benefits of the transaction for creative talent and unionized workforce. We want to ensure the long-term stability and growth of our valued workforce and industry as a whole.”
He also said Par will continue to engage with Congress on the issue of a federal tax incentive for film and TV production. “America already has the world’s leading entertainment workforce and world-class production facilities. It now just needs a federal film tax incentive to close the competitive gap with the rest of the world, and again attract the biggest film and TV projects, activate its highly skilled workforce, and utilize its infrastructure. We enthusiastically and actively support federal tax incentives that will assist in expanding production in the United States, and we will look forward to filling our sound stages to maximum capacity once again.”
And he urged Sen. Schiff and Rep. Friedman “to work with your colleagues in both the House and Senate to ensure that Section 181 is reinstated as soon as possible,” referring to a section of the U.S. tax code that was key for film and television production but expired at the end of last year.
Paramount Responds To Letter From Hollywood Figures, Says WBD Merger Will Ensure Creatives Have “More Avenues For Their Work, Not Fewer”
After more than 1,000 Hollywood content creators and other figures signed on to a letter opposing the Paramount–Warner Bros. Discovery merger, the company has responded by making the case that the transaction will ensure that there will be “more avenues for their work, not fewer.”
The company statement said, “This transaction uniquely brings together complementary strengths to create a company that can greenlight more projects, back bold ideas, support talent across multiple stages of their careers, and bring stories to audiences at a truly global scale—while strengthening competition by ensuring multiple scaled players are investing in creative talent.
Earlier on Monday, a coalition of groups posted the letter, warning of the transaction, “We are deeply concerned by indications of support for this merger that prioritize the interests of a small group of powerful stakeholders over the broader public good.” Among those signing were JJ Abrams, Damon Lindelof, David Fincher and Denis Villeneuve, and actors like Don Cheadle, Jason Bateman, Lin-Manuel Miranda, Noah Wyle and Tiffany Haddish. The letter was organized by groups including the Committee for the First Amendment, recently relaunched by Jane Fonda, as well as the Writers Guild of America, Democracy Defenders Fund and the Future Film Coalition.
Paramount CEO David Ellison has previously said that the merger would strengthen the industry and feature film output. But there’s significant worry about massive job loss with the transaction, given the consolidation of two legacy studios under one corporate umbrella.
California Attorney General Rob Bonta and other state AGs are scrutinizing the transaction, with some expectation that the Justice Department will not challenge it.
The full Paramount statement is below:
We hear and understand the concerns that some in our creative community have raised and respect the commitment to protecting and expanding creativity.
Importantly, as creators we know firsthand that this is also a moment when the industry has been facing significant disruption—and the need for strong, creative-first and well-capitalized companies that can continue to invest in storytelling has never been greater.
This transaction uniquely brings together complementary strengths to create a company that can greenlight more projects, back bold ideas, support talent across multiple stages of their careers, and bring stories to audiences at a truly global scale—while strengthening competition by ensuring multiple scaled players are investing in creative talent.
We have been clear in our commitments to do just that: increasing output to a minimum of 30 high-quality feature films annually with full theatrical releases, continuing to license content, and preserving iconic brands with independent creative leadership —ensuring creators have more avenues for their work, not fewer.
We understand the concerns raised as a result of the disruptions caused to our industry by COVID, entry of big-tech, and changes in consumer behavior, but we promise this: Paramount remains deeply committed to talent, and this merger strengthens both consumer choice and competition, creating greater opportunities for creators, audiences and the communities they live and work in.
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