The War Over Warner Bros. Is Splintering Hollywood’s Labor World

When the antitrust trial over the planned $111 billion merger between Paramount Skydance and Warner Bros. Discovery was scheduled for March 2027 , the delay was viewed as a major blow to studio CEO David Ellison and his team.

It turns out the leaders of the Directors Guild of America and IATSE unions think the prolonged timeline is a disaster for them, too. In a letter sent to California Attorney General Rob Bonta and Ellison on Wednesday, union heads projected the lengthy timetable would harm workers and called for a settlement or, at the very least, an expedited trial.

This pro-settlement approach put them at odds with their compatriots at the Writers Guild of America, which has not only supported the attorneys’ general suit but has launched its own lawsuit to block the merger, presenting another hurdle to a quick resolution.

SAG-AFTRA is seemingly splitting the difference by supporting the state regulators’ suit and opposing the deal unless “enforceable safeguards” are put in place, theoretically through a settlement. The Teamsters previously called for the Department of Justice to block the deal unless specific conditions were met and, in a statement , motion picture division head Lindsay Dougherty called on Paramount Skydance to “stop playing games and show us more of your commitment to the workforce.”

Why the divided front in Hollywood’s solidarity-obsessed labor world? To understand the split, it’s helpful to look at the exposure that each of the unions have to production fluctuations, as well as the roles they typically play in the high drama of entertainment labor relations.

The triple whammy of the COVID-19 pandemic, the 2023 writers’ and actors’ strikes and the ensuing pullback in content spending from major companies hit all Hollywood workers hard. But combine that with additional outsourcing of production from California, not to mention the U.S. all together, and union members dependent on freelance production work in their areas have had little reason for hope the last few years. Work has begun to rebound, but not nearly fast enough for many. IATSE, which represents an array of crew members including gaffers, grips, camera assistants and costume designers, has reported that hours worked by members in 2025 were down nearly 36 percent from 2022.

While the Directors Guild certainly counts in-demand helmers as members (its president: Christopher Nolan himself), it also represents plenty of rank and file crew workers, such as unit production managers, assistant directors, associate directors and stage managers. The union has seen a 40 percent decrease in employment since 2022, a union source tells THR .

According to DGA and IATSE leaders, they’ve already seen a retreat in jobs as a result of the uncertainty swirling around the future of Warner Bros. Discovery. And it’s spooked them.