A proposed merger between Paramount Skydance and Warner Bros. Discovery could eliminate 4,500 film and television jobs in Los Angeles County, according to a study by consulting firm CVL Economics published this week.
The report warned that combining the two media conglomerates would accelerate an ongoing decline in entertainment production across Los Angeles. Over the past four years, the region has already lost 52,000 jobs in the sector.
If the deal goes through, around 4,500 production jobs could be lost over a three-year period as the companies combine their operations. Researchers noted that a decade of local employment growth could be put at risk, including 2,661 indirect jobs at small businesses that support production, such as prop houses, printing shops, and transportation vendors, along with another 3,200 positions tied to the surrounding economy.
Paramount Skydance and Warner Bros. Discovery represent two of the largest media and entertainment conglomerates in the United States, managing major Hollywood film studios, television production facilities, and global broadcast networks.
Economic Impact and Fiscal Losses
The economic fallout from losing these positions would be substantial, the study noted. The report detailed a potential loss of $1.2 billion in wages, $2.7 billion in economic value, and $4.6 billion in total commercial output.
Local and state governments would also face a drop in tax revenues totaling $547 million. That figure includes $78.6 million in local taxes, 63 percent of which is generated by property taxes.
The proposed deal faces strong legal opposition from 12 U.S. states, led by California and New York. State officials filed a lawsuit arguing that the merger would eliminate competition in Hollywood and violate a federal antitrust law enacted in 1914 that prohibits mergers that substantially lessen competition.
According to the lawsuit, the combined company would control approximately 27 percent of the theatrical film distribution market and over 30 percent of major blockbuster theatrical releases. The complaint also stated that the transaction would increase concentration in basic cable television channels.
Judicial Timeline and Guild Opposition
In addition to the multi-state lawsuit, the Hollywood writers guild filed a petition in a California federal court seeking a preliminary injunction to keep the merger agreement blocked.
Under pressure from the legal challenges, Paramount accepted delaying the merger until June 2027, unless federal courts resolve the lawsuit before that date.
A federal antitrust trial has been scheduled for March 2, 2027. The timing represents a setback for the media conglomerate, which had requested a trial start date in November, arguing that a prolonged delay puts the merger at risk.
