The Death of Movie Magic: The Warner Brothers and Paramount Merger

On Oct. 6, 2026, Warner Bros. was officially acquired by Paramount Skydance in a $110 billion merger that promised to deliver “30 high-quality theatrical films per year” and “build the next-generation global media and entertainment company powered by creativity and technology.” It is part of a sequence of mergers involving Disney acquiring 20th Century Fox and Sony acquiring Columbia. It gained quite a bit of attention due to a large number of members from Writers Guild of America (WGA), Directors Guild of America (DGA), and high-profile actors openly opposing the deal. Many of them later joined Block the Merger, an industry campaign led by the Future Film Coalition to oppose the Warner Bros. Discovery and Paramount Skydance (WBD-PSKY) merger. Despite the intense opposition, the acquisition went through as planned. The acquisition was funded by multiple foreign investors along with the Ellison family (David Ellison, son of billionaire Oracle founder Larry Ellison, is the CEO of Paramount Skydance). According to Section 310 of the Communications Act of 1934, foreign investors should only have been allowed to own 25% of the company. In this case, the Federal Communications Commission (FCC) allowed them to increase foreign ownership to 49.5%, stating that they “are persuaded by Paramount’s argument that the Foreign Investors therefore will not be able to wield any influence, let alone control, over decisions involving the Licensees.” It’s important to note that the Ellisons donated $45 million to Donald Trump’s 2024 presidential campaign. Of course, they’re still going to keep the funds “under review,” which means that they will pretend to regulate the activity of Skydance. This is part of a false compromise that allowed the Ellisons to win this case while screwing over workers. Production workers are already bearing many of the consequences of this merger. Despite the agreement to donate millions of dollars to unions and workforce development, a report released by the County of Los Angeles stated that the merger would result in “4,500 local film and TV jobs directly and 10,360 total jobs indirectly exposed, with up to $4.06 billion in business output and $547 million in tax revenue at risk.” The impact of this expands beyond production workers and the film industry, with supporting sectors such as retailers, restaurants, agents, and promoters also being affected by the mass layoffs. Not to mention that one company mass-producing film, television, news, and other forms of entertainment means that variety will practically be eliminated and prices of streaming, cable, and movie tickets will skyrocket. This merger promised to improve film quality and increase film production, but it only seems to be benefitting the pockets of David and Larry Ellison. Speaking of film quality, the merger prioritizes the quantity and revenue of films produced over crafting individually compelling stories. This, obviously, is not a new pattern, as film, like any art form, has been defined by the tension between creating art and maximising profit. Both Warner Bros. and Paramount initially became leading companies by toeing that line. This led to the creation of franchises such as Jurassic Park and Harry Potter that were as profitable as they were well-made. However, just because there is a repeating pattern doesn’t mean that we get to avert our eyes and pretend that it’s not important. The most tragic thing about this merger is the massive loss of artistry in film. Film is at the intersection of so many forms of art, ranging from music to costume and visual design, and good film takes a creative risk in any of these departments. Now, more than ever, artists who want to take creative risks are going to be denied visibility. Experimental film propels many of the important discussions we have about society, politics and culture. For example, movies like “Obsession,” “Companion,” and “Jennifer’s Body” have opened important conversations about rape, sexual assault, and female autonomy. Film can teach empathy to an audience like no other medium of art, and the connection it has built with its audience is slowly being severed. It is now hard to understand meaningful art, and even harder to create it. Isha Bhandari is a member of the class of 2030 and can be reached at ibhandari@wesleyan.edu.