Karen Bass Urges Paramount’s David Ellison, California AG Rob Bonta to ‘Find Common Ground,’ Reach Settlement on WB Merger Lawsuit

Los Angeles Mayor Karen Bass is urging David Ellison and California Attorney General Rob Bonta to “find common ground” and settle a lawsuit seeking to block the pending $110 billion Paramount-Warner Bros. Discovery merger.

“While there are varying perspectives on the proposed transaction, today we are united around one clear message: It is time for all parties to come to the table,” Bass said during a news conference on Thursday. “The continued uncertainty is not good for workers, not good for productions and not good for the future of this industry. Too many productions in L.A. are now at a standstill, which means Angelenos are out of a job and they’re not getting paid.”

“As mayor, I cannot stand by while the job security of thousands of hardworking union members is being put at risk. That is why we are calling on Paramount, Attorney General Rob Bonta, and all relevant parties to come together, engage directly and in good faith, and work urgently to find common ground and keep our vital industry in Los Angeles at a time when film and television production is already facing significant challenges,” Bass continued. “We cannot afford prolonged uncertainty that delays investment, puts production on hold, and creates greater instability for thousands of workers and family. Any resolution must put workers and the long-term health of our entertainment industry at the center, it must include meaningful and enforceable commitments to keep Paramount and Warner Brothers Discovery in L.A. as well as maintaining jobs, productions, and investments in L.A. and California.”

Bass’ call for a settlement comes after TheWrap was first to report a new study by L.A County’s Department of Economic Opportunity and CVL Economics, which found that the merger could result the loss of nearly 4,500 TV and film jobs over the next three years.

It could also risk 2,661 indirect jobs at small businesses that support production — such as prop houses, printers, transportation companies and other vendors — and 3,204 induced jobs that exist because film and TV workers spend money in the local economy — including restaurants, retailers and service providers.

Overall, the economic impact of losing these jobs would be $1.26 billion in wages, $2.78 billion in economic value, $4.06 billion in total business output and $547 million in tax revenue, including $78.6 million in local taxes — most of which (63%) comes from property taxes, per the study.

Meanwhile, Paramount CEO David Ellison has threatened to begin the process to move the company’s operations out of the Golden State starting Oct. 1 if Bonta does not come to the table on a settlement. Bonta has called the threat “blackmail” and maintains that he is open to a settlement, but that Paramount needs to offer structural remedies, such as divestments, rather than behavioral remedies.

More to come…