LOS ANGELES — Paramount Skydance chairman and CEO David Ellison vowed to keep Hollywood jobs in Los Angeles in a letter he sent last month to U.S. Sen. Adam Schiff and U.S. Rep. Laura Friedman, D-Glendale, where he addressed their concerns regarding the acquisition of Warner Bros. Discovery.
The deal by Paramount-Skydance to acquire Warner Bros. reportedly stands at $110 billion, but the merger of major Hollywood studios and streaming services is expected to face antitrust scrutiny.
In his letter to lawmakers, Ellison said that should the Paramount-Warner Bros. merger be successful, he was committed to:
- Increased Creative Output
- Third-party Content and Licensing
- Preserving HBO
- Theatrical Commitment
- Preserving the Home Video Window
In an interview with Spectrum News earlier this month, Friedman said she had concerns about consolidation within the entertainment industry because every time there is consolidation in any industry, it leads to less competition and higher prices for consumers.
In his letter, Ellison said the merger would not create any market power in any facet of the business.
“Market forces will continue to assure competitive pricing and quality if Paramount is ultimately successful in acquiring Warner Bros. Discovery,” he wrote.
Additionally, another topic of concern for Friedman is that the merger of major Hollywood studios could have a negative impact on jobs in the Los Angeles area.
“We cannot afford to lose thousands of jobs at a time when Southern California is still recovering from last year’s deadly wildfires,” Friedman told Spectrum News in March.
Ellison, in his letter, stated that he is committed to preserving and expanding good-paying film and television jobs in the area. In his letter, he writes that “Paramount has deep roots in Southern California. My vision as CEO is to stay true to our roots.”
One way Ellison said would help create more “good-paying jobs” in Los Angeles was his pledge to continue to be active buyers of content from third-party studios and independent producers.
In line with keeping and creating local jobs in the region, Ellison wrote that he had met in person with key guild and union representatives to discuss “our vision for the combined company and the benefits of the transaction for creative talent and unionized workforce. We want to ensure the long-term stability and growth of our valued workforce and industry as a whole.”
Both Friedman and Schiff have been working to institute a national cash credit to keep entertainment union jobs not only in California but in the U.S. While there is a California tax credit, the national cash credit would double down that investment and help keep production in the country. It’s an issue that Friedman said has acquired bipartisan support because other members of Congress are seeing production in their states.
Ellison said that while America already has the world’s leading entertainment workforce and production facilities, it needs a federal film tax incentive to close the competitive gap with the rest of the world.
“We enthusiastically and actively support federal tax incentives that will assist in expanding production in the United States. We will look forward to filling our sound stages to maximum capacity once again,” he wrote.
A new report by FilmLA Research released this week showed that the use of sound stages in the Los Angeles region remained steady at about 62% during the first six months of 2025 after a significant decrease in such occupancy that began in 2023.
Ellison wrote that he would continue to engage with Congress to push forward a federal film tax incentive. He also encouraged both the House and Senate to reinstate Section 181 of the tax code.
Section 181 of the tax code, Ellison wrote, would support “made in America” film, TV and theatrical productions, while also supporting communities across the country.
In a statement to Spectrum News on Thursday, Friedman said:
“I asked for concrete commitments, and this letter puts some on the table, like 30 films a year, 45-day theatrical window, and real support for a federal film tax incentive. Those are measurable, and I intend to measure them. The thousands of workers on our sound stages and backlots need to see these promises show up in their lives, not just in a letter. I won’t stop working to protect their jobs and hold Paramount to every word.”
On Friday, Friedman will join Schiff at a field hearing called “Lights, Camera, Competition: Promoting American Film Production.”
The hearing is expected to highlight the challenges facing the American film industry and how it impacts California in particular.
“There are many pressures facing the entertainment industry workforce — from generous tax incentives offered by other countries to the potential merger of two of Hollywood’s biggest studios,” Schiff said in a statement.
Friedman and Schiff will be joined by other lawmakers and “The Pitt” Golden Globe and Emmy-winning actor Noah Wyle.
Read David Ellison’s letter below:
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source spectrumlocalnews.com ’
