Proposed Paramount-Warner Bros. merger risks 4,500 LA film and TV jobs, report warns

LOS ANGELES - A proposed merger between Paramount Skydance and Warner Bros. Discovery could endanger thousands of local entertainment jobs and wipe out billions in regional economic activity over the next three years, according to a final county report released Wednesday.

What we know:

The report, prepared by CVL Economics for the Los Angeles County Department of Economic Opportunity and the L.A. County Film Office, estimates that approximately 4,500 direct film and television jobs could be lost if operations combine.

The consolidation poses risks to a total of 10,360 job-years, which includes 2,661 indirect jobs at production vendors—such as prop houses, transportation providers, and printers—and 3,204 jobs across the broader local economy.

Financially, the report projects $4.06 billion in total business output, $1.26 billion in wages, $2.78 billion in economic value, and $547 million in tax revenue (including $78.6 million locally) could be at risk.

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The U.S. Department of Justice cleared the transaction on June 12, but California Attorney General Rob Bonta and 11 other state attorneys general filed an antitrust lawsuit to block the deal. 

Under a July 24 court stipulation, the companies cannot close the deal until after a trial scheduled for March 2027.

What we don't know:

It's unknown exactly how corporate leaders will structure workforce adjustments if the transaction closes, as the companies have not formally announced job cuts on the scale modeled in the analysis.

What they're saying:

"This report confirms what we feared: 4,500 direct film and television jobs, more than 10,000 total job-years, and $4.06 billion in business output are at risk," said Supervisor Lindsey Horvath. "Los Angeles has already lost too many jobs, too much production, and too many people who make this industry possible. We cannot afford to lose another generation of Hollywood workers."

"Understanding the full scope of these economic and workforce impacts is critical to how we respond," stated DEO Director Kelly LoBianco. "This data gives us a clearer picture of where workers, small businesses, and the broader entertainment ecosystem are most vulnerable..."

David Ellison, CEO of Paramount Skydance, previously stated that the merger would honor both companies' legacies while creating a "next-generation media and entertainment business."

Adam Fowler, CVL Economics co-founder and lead author, noted, "The historic leverage of this transaction will require aggressive shifts in cash flow to service debt, and most of the available levers—moving production to lower-cost regions, rationalizing real estate, and eliminating duplicative operations—carry direct consequences for Los Angeles County's entertainment sector."

What's next:

LA County is formulating a workforce response plan utilizing its 18 America's Job Centers of California to support impacted workers through job fairs, streamlined unemployment access, and potential placements with productions receiving state tax credits.

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