The operation would represent a new step in consolidation of the film industry and television. In recent years Disney acquired 20th Century Fox, Discovery joined Warner Bros, and Skydance bought Paramount. The current merger would reduce the number of independent studios even further, concentrating under one governance activity operating in the same markets and buying content from the same creative pools.

Warner Bros Discovery was born just three years before this decision. According to the Guardian, the company was weighed down by debt and TV-related activities losing value. The group had initially sought an alliance with Netflix, then shifted towards Paramount after that opportunity fell through.

This current merger arises also from the need to redefine the asset structure of a recently built conglomerate. Paramount presents the deal as favorable both for the industry and public. Makan Delrahim, legal affairs officer at the society and former component of the antitrust division of Justice Department during Trump administration, has stated in June, according to Los Angeles Times and Guardian reports, that the combination would be pro-competitive: it would increase production and employment, reducing costs for consumers.

The occupation prediction scenario however delineates different scene. A report of the Economic Opportunity department of Los Angeles County published earlier than this article reported that the fusion might result in around 6,000 job losses. Of these, 2,495 would concern solely the county of Los Angeles, one of the most exposed territories to studio reorganization.

The gap between promises made by the society and such estimates is now central point of contention. Overlapping structures belonging to the same sector fuels fear that new owner will proceed to reduce duplicate functions. The Guardian further indicates possible consequences including greater uniformity editorial and productive decisions, with fewer centers called upon to decide which films and programs to finance.

Sur la question juridique, California et d'autres onze États ont promu un’action contre Paramount visant à bloquer l’opération. This initiative comes despite federal review having been surpassed. It shows divergence between national free pass obtained and advanced assessment from state authorities involved.

Controversy adds uncertainty to table drawn up by companies. Un second obstacle could arise from European Union, which, according to the same source, examines agreement with prudent attitude. Scrutiny European may delay entry into force of merger, scheduled for September.

No information provided regarding outcome or conditions imposed by EU authority. Writers Guild of America has also initiated legal action. Scenariators claim that resulting entity from acquisition of Warner Bros by Paramount would become largest US buyer of original content for cinema and television.

According to their thesis, disappearance of a competitor studio reduces competition in market where authors and producers propose own projects. The governance of this new organization must therefore contend with difficult-to-conciliate interests. Paramount aims to demonstrate that higher scale can sustain more productions and lower prices, while opponents concentrate on power negotiation of group, occupation, and plural creative choices.

Information available does not specify which facilities, divisions, or professional categories will be affected by eventual reductions. Rest are open: outcome of lawsuits promoted by states and writers guild, decision of regulatory authorities, and possibility of respecting deadline of September. Until now, statements made by Paramount about industrial benefits coexist with unfavorable job loss estimates and contestations concerning competition.

Verifications regulatory and judicial will determine if new consolidation can proceed and under what conditions.