David Ellison Tells Lawmakers the Paramount-WBD Merger Could Boost Job Growth
Paramount CEO Affirms Commitment to Separate Operations and Job Creation Amid Merger Talks
Paramount CEO David Ellison addressed California lawmakers, emphasizing his dedication to maintaining the operational independence of Paramount and Warner Bros. while committing to producing a combined total of 30 films annually. He argues that this merger will foster job creation within the film and creative industries.
In a response to inquiries from lawmakers concerning employment, artificial intelligence, competition, and strategies for negotiating with unions, Ellison stated, “Every one of these commitments is measurable, objective and verifiable.” His comments come as the company aims to finalize its acquisition of Warner Bros. in the third quarter.
The merger, valued at $31 per share and totaling an equity value of $110 billion, is projected to yield at least $6 billion in cost savings. However, this has raised concerns in Hollywood regarding significant layoffs. Despite speculation surrounding potential job cuts, executives have downplayed these fears, asserting that a substantial portion of the savings will be achieved through other means.
The impact on the industry is a hot topic, with various guilds expressing apprehension. The Writers Guild of America (WGA) recently described the merger as “a disaster for writers, consumers, and the entire entertainment industry,” advocating for it to be blocked.
Ellison highlighted Paramount’s history of collaborative relationships with unions, stating, “Paramount values the talent, passion, and hard work our union workforce dedicates to their craft and our industry.” He reiterated the company’s commitment to negotiating in good faith with union representatives, having already met with key stakeholders to discuss the benefits of the merger for creative workers.
Further, he noted that Paramount plans to continue advocating for federal tax incentives to bolster film and television production in the U.S. “America already has the world’s leading entertainment workforce and world-class production facilities,” he stated. He emphasized that a federal film tax incentive is essential for keeping competitive with global markets and attracting major film and TV projects.
Ellison urged Senator Schiff and Representative Friedman to collaborate with their congressional colleagues to swiftly reinstate Section 181 of the U.S. tax code, which is crucial for film and television production and expired at the end of the previous year.
