Over 1,000 personalities from the American film and TV industry, including notable figures like Joaquin Phoenix, Ben Stiller, and Kristen Stewart, have publicly expressed their disapproval of the proposed acquisition of Warner Bros. Discovery Inc. (NASDAQ:WBD) by Paramount SkyDance Corp. (NASDAQ:PSKY).
In an open letter, they criticized the merger for favoring the interests of a few influential stakeholders over the wider public good. The signatories of the letter argue that the merger could seriously undermine the “integrity, independence, and diversity” of the industry.
The signatories, which also include several Academy Award winners, argued that the deal would further concentrate the media industry, reducing competition, limiting opportunities and jobs, raising costs, and leaving audiences with fewer choices, while shrinking major U.S. film studios to just four.
According to Hollywood, media consolidation has led to the decline of mid-budget films, weakened independent distribution and global sales, reduced profit participation, and undermined screen credit standards.
They emphasized that strong competition is vital for both the economy and democracy, urging effective regulation and enforcement
They backed efforts by California Attorney General Rob Bonta and other state officials to investigate and block the deal.
Paramount Backs Creators, Defends Deal
Paramount responded with a statement recognizing the concerns of the creative community, stressing its commitment to supporting and growing creative talent, and asserting that the merger would strengthen competition by enabling multiple scaled players to invest in creators, as reported by Variety.
The David Ellison-led company is also committed to producing at least 30 high-quality feature films each year with full theatrical releases, while continuing to license content and maintain its iconic brands under independent creative leadership.
This merger has been a topic of contention since its announcement. In February, renowned director James Cameron warned that a sale of Warner Bros. Discovery to Netflix Inc. (NASDAQ:NFLX) could severely damage the theatrical film business, likening the potential fallout to a “sinking ship.”
Later, Netflix dropped out, and Paramount won the acquisition bid.
Financing Secured For The Acquisition
Last Week, Paramount SkyDance secured permanent financing for the acquisition, reducing debt from $54 billion to $49 billion through bank-backed loans and credit restructuring.
Before that, ISS, a prominent advisory firm, backed the Warner Bros-Paramount deal but rejected CEO David Zaslav‘s $886 million ‘extraordinary’ golden parachute.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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