David Ellison tells lawmakers Paramount-WBD merger will support employment growth

Paramount CEO David Ellison informed California officials about his dedication to maintaining Par and Warner Bros. as separate entities. 

He promises to produce 30 movies annually if the merger occurs, supporting ongoing job growth in the film and creative sectors.

In a communication to Sen. Adam Schiff and Rep. Laura Friedman, which Deadline obtained, he mentioned that the merged company will continue licensing content to its platforms and other third-party outlets. 

It will also remain active in purchasing content from other studios and independent creators. HBO will operate on its own. 

The cinematic and home video release windows will be maintained. These pledges, which he has previously addressed publicly, “will aid in preserving quality jobs and broadening prospects for workers both in California and across the nation.”

“These commitments are concrete, measurable, and verifiable,” he noted, responding to the lawmakers' concerns about employment, AI, competition, and negotiating earnestly with unions as the company progresses towards finalizing the WB acquisition in the third quarter.

Paramount predicts that at least $6 billion will be saved through the deal, leading to significant apprehension in Hollywood about potential large-scale layoffs. 

The $31 investment per share, with a combined equity worth $110 billion, will burden the merged company with considerable debt. 

Leaders have dismissed speculations about widespread job cuts, emphasising that a lot of savings will be derived from other areas.

The guilds have expressed concern. Late last month, the WGA wrote that “The absence of competition would spell disaster for writers, consumers, and the entire entertainment industry. This merger must not proceed.”

Ellison mentioned that “Paramount has historically maintained a cooperative and respectful relationship with the unions, their leadership, and its unionized workforce. 

Paramount deeply values the talent, enthusiasm, and dedication our unionized workforce contributes to their art and our industry.”