A new study has highlighted the potential economic impact on Los Angeles County were the $111bn Paramount-Warner Bros Discovery (WBD) merger to close.
The report, compiled by CVL Economics and published on Wednesday, estimates the transaction could result in the loss of 4,500 film and TV jobs in the region over the three years the companies would combine operations.
Direct jobs at risk account for nearly 9% of the 52,016 film and TV jobs California has lost since 2022, 99.6% of which have occurred in Los Angeles County.
The reasons given for the potential job losses were that a consolidated media giant would result in fewer buyers; fewer development opportunities for around 895 creators that currently hold exclusive deals with the two companies; and a possible move away from California by a significant number of productions, exacerbating the production flight that has stymied the state, particularly in film.
Consolidation could be far worse in Los Angeles County than other parts of the state, as the area houses most overlapping roles within a merged company.
The report’s authors said despite Paramount CEO David Ellison’s pledge that a combined company (carrying roughly $82bn in gross debt) would release 30 theatrical films a year, there are no guarantees that production would remain in Los Angeles County. It said only one production from both Paramount and Warner Bros took place in-state in 2025.
The study also noted that 10,360 ”job years” could be at risk, including 2,661 indirect jobs at small businesses that support productions, and 3,204 “induced jobs” in hospitality, retail, and service provision that exist because of local production spend.
The specific economic impact, were Ellison to overcome the final hurdle of the spring 2027 antitrust trial brought by 12 US state attorneys general and Writers Guild of America, is estimated to be $1.3bn in wages, $2.8bn in economic value, $4.1bn in total business output, and $547m in tax revenue including $78.6m in local taxes.
As the report notes in regard to the protracted merger process and recently-scheduled March 2 2027 trial date: “Although the DOJ approved the transaction on June 12, 2026, the prolonged period of uncertainty presents ongoing risks for Los Angeles County’s entertainment workforce and production economy.”
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