Paramount and Warner Bros. $111bn merger: Benedict Cumberbatch, Alan Cumming and Benedict Wong urge UK to block deal, warn of job losses and fewer films
actor Benedict Cumberbatch, Alan Cumming and Benedict Huang Calls on the UK government to block Paramount’s proposed $111 billion merger with Warner Bros. Discovery, warning the deal could “cause huge harm to the British public” by threatening jobs, independent filmmaking and media diversity.In a joint column published in The Guardian, the actors urged Culture Secretary Lisa Nandy to intervene in the blockbuster merger, saying the UK film and TV industry was at a critical moment.
“We have a responsibility to the public”
Explaining why they decided to speak out, the trio wrote: “As actors and public figures who have spent our careers in the British arts – working with British crews, on British stages and sets – we have a responsibility to the public who support, enjoy and consume the art we create.”They called the merger a threat to Britain’s creative industries, adding: “Britain is threatened by a media merger that will harm our workers, our culture and the public – but we can stop it.”The actors also welcomed Lisa Nandy’s earlier “intentional intervention” and noted that a coalition of 12 US states, led by California, had filed a lawsuit seeking to block the merger, arguing that the merger would “raise prices, reduce the number of films produced and reduce the quality of what audiences can watch.”
Paramount Confidence despite legal challenges
Their comments came as Paramount agreed to delay completing the acquisition until a U.S. court rules whether the deal violates antitrust laws.In response to the legal challenge, a Paramount spokesperson said a delay was “the fastest and clearest way to demonstrate that this deal is good for competition, good for consumers and good for creators, as dozens of competition authorities around the world have already concluded.”Paramount CEO David Ellison It has also been stated many times that the merger will embrace “cutting-edge innovation” and bring new impetus to the entertainment industry.
‘The fight against this merger now has two sides’
Although the US proceedings are ongoing, Cumberbatch, Cumming and Wong believe the UK must make its own decision.The US legal challenge “confirms the danger; however, it cannot replace the UK’s work”, they wrote.The actors added: “The fight against this merger now has two fronts, with Nandy commanding one of them. If her department decides to intervene, it could be one of the most important decisions the Culture Secretary takes for British film, TV and media in a generation. “
Warning for jobs, film production and news media
The trio stressed that there is much more to the UK entertainment industry than what audiences watch on screen.“British film and television are more than just images on a screen; they are the lives and livelihoods of thousands of workers and families whose work underpins local economies,” they wrote. They noted that the industry supported around 180,000 jobs and generated £6.8bn in production spend last year.They called the industry a national asset, adding, “It’s one of the things the UK still does better than almost anyone and it’s a cultural heritage we must protect.”The actors also said they were “increasingly alarmed” at the impact of media consolidation on creative storytelling.They note that the Sundance Film Festival has seen a sharp decline in independent film acquisitions in recent years, writing: “Award-winning documentaries — films that win Oscars and the festival’s top jury prize — have struggled to find commercial distribution because they touch on subjects that the few remaining buyers find inconvenient. Each such merger narrows the channels through which stories reach audiences.“
“In plain English, this means layoffs”
Referring to Warner Bros. The $84 billion in debt and company plans are expected to provide about $6 billion in synergies, the actors wrote, which “in plain English means layoffs, canceled productions, fewer commissioned films and less risk.”“This is exactly why the Paramount-WBD merger is so dangerous,” they added, noting that previous industry mergers resulted in production cancellations and thousands of layoffs.Actors also expressed concerns about the merger of major news organizations such as Channel 5, CNN International and CBS News.They wrote: “CNN and CBS News Archives [are] is one of the world’s most important broadcast news collections, with more than 4.25 million videos, images and media spanning nearly half a century. If a commercially interested owner controls access to both, they control the raw material of our historical memory. “The trio further claimed, “Paramount CEO reportedly told Donald Trump he would make ‘radical changes’ to CNN if the deal goes through.”‘This is not someone else’s argument. This is ours.Following the appeal, the actors defended their decision to speak out against the merger.“Actors are often told not to get involved in legal arguments,” they wrote.“We understand the instinct. But we’ve spent enough time in the UK Have worked with enough UK crews and watched enough great work from the UK struggle to find buyers to know that this isn’t someone else’s argument. This is ours. “
Court halts merger
Paramount, meanwhile, agreed to put the merger on hold while legal proceedings continue, with David Ellison trying to reassure Paramount employees in a company-wide memo.“We remain very confident that this transaction will not create any legal issues and that we will complete the transaction and merge the two companies together,” Ellison wrote.He added: “We believe this is the right path because the facts and the law are on our side and a full hearing will demonstrate why the plaintiffs’ arguments should not prevail.”A U.S. federal judge has since issued a 14-day temporary restraining order, temporarily preventing Paramount from completing the acquisition while the court considers a request for a preliminary injunction. The hearing is currently scheduled for August 3, but the date may change. According to reports, Paramount could start paying Warner Bros. millions of dollars a day if the deal doesn’t close by September 30. Investors under the Merger Agreement.
