NEW YORK (AP) — The Writers Guild of America became the latest group to challenge Paramount's $81 billion acquisition of Warner Bros. Discovery on Tuesday, filing a lawsuit that seeks to block the merger on the grounds it would cause “specific harm” to movie and TV writers working across the U.S.
A Paramount-Warner merger “threatens the economic and creative health of the American entertainment industry,” reads Tuesday's federal complaint, which was filed by both the Writers Guild of America West and Writers Guild of America East (jointly the WGA).
The union argued that the merger would create less competitors and give the larger company “both the incentive and the ability” to lower wages and the number of projects that offer workers employment.
“This proposed combined entity would be the largest employer of writers, with tremendous power to suppress our wages, eliminate opportunities for emerging writers, cut jobs across the industry, and produce less programming," WGAE President Tom Fontana said in a statement.
A Warner-Paramount tie-up would bring together two of the five last legacy studios in Hollywood. It would also mean putting Warner’s HBO Max, its libraries filled with popular titles like “Harry Potter” and even CNN under the same roof of Paramount-owned CBS, movies like “Top Gun” and the Paramount+ streaming service.
Tuesday’s complaint alleges that the merger violates antitrust law by reducing competition in three markets for writers: writing for episodic TV and streaming series, TV writing deals overall and screenwriting for the biggest theatrical films.
In response, Skydance-owned Paramount maintained that a combined Warner-Paramount would allow the company to “expand opportunities for writers, not shrink them.” It also reiterated pledges to release at least 30 movies a year with a 45-day window exclusive to theaters — and said it would continue to commission from independent production companies while maintaining “two distinct film studios.”
“A stronger Hollywood only means something if it’s stronger for the writers who power it," the company said in a statement.
The WGA's complaint arrives a day after 12 states, led by California Attorney General Rob Bonta, filed a lawsuit challenging the deal, alleging that it would “extinguish competition” in Hollywood and lead to fewer choices for moviegoers and cable TV customers nationwide.
The coalition of states called on Warner and Paramount to not close the merger until after a court had time to “fully evaluate” their claims. But they said the companies quickly refused — and late Monday night, the group filed an emergency motion in federal court seeking a temporary restraining order and preliminary injunction aimed at immediately halting the deal.
Paramount on Monday called the states' claims “wrong on both the facts and the law” and vowed to “vigorously defend” its Warner acquisition.
The growing list of legal challenges could become a roadblock in Paramount’s quest to complete its purchase of Warner. Other regulatory reviews are ongoing in the European Union and in the U.K., which has suggested it may intervene. But Paramount has also racked up effective green lights from a handful of other countries, including the Trump administration in the U.S., China, Canada and Australia.
Paramount and Warner have hoped to close their deal sometime in the third quarter of this year. In Monday night's motion seeking an immediate pause, the states said the companies may try to complete the process as early as July 22.
Including debt, Paramount’s proposed purchase of Warner is valued at nearly $111 billion based on outstanding shares.
FILE - The Paramount Pictures water tower is seen in Los Angeles, Dec. 18, 2025, with the Hollywood sign in the distance. (AP Photo/Jae C. Hong, File)
FILE - The Warner Bros. water tower appears at Warner Bros. Studios in Burbank, Calif., on Dec. 5, 2025. (AP Photo/Jae C. Hong, File)
MADRID (AP) — Thousands of people who travel every day between the southern tip of Spain and the British territory of Gibraltar will no longer have to cross a physical border, beginning on Wednesday.
The official opening at midnight on Tuesday — after a border fence was fully removed — allows a new freedom of movement under a historic treaty between the European Union and the United Kingdom. It came after years of post-Brexit wrangling.
The contested British Overseas Territory of 38,000 people is perched at the southern end of the Iberian Peninsula, in a strategic location mere miles from Morocco where the Atlantic Ocean meets the Mediterranean Sea.
Soon after midnight, crowds crossed freely between Spain’s La Línea de Concepción and Gibraltar in both directions. Many wore Spanish soccer jerseys after Spain’s victory against France in the World Cup semifinal on Tuesday, adding to the celebratory mood.
“What you feel here is the brotherhood between the two people,” Gibraltar's Chief Minister Fabian Picardo told Spanish broadcaster RTVE.
When Britain left the EU in 2020, the relationship between Gibraltar and the bloc had been left unresolved.
Previous talks on a deal to ensure people and goods could keep flowing across the border had made halting progress. In 2025, the EU and U.K. announced an agreement on those issues, with the two sides and Gibraltar’s government signing a treaty Tuesday that eases border crossings.
The U.K.’s Foreign Office Minister Stephen Doughty said Tuesday that the agreement secured Gibraltar’s long-term economic future and interests.
Maroš Šefčovič, the EU’s trade representative, praised the agreement, too.
“It has taken four years of patient, complex negotiation, but the outcome speaks for itself,” Šefčovič said. “It is a very special feeling to see a fence come down.”
Without a deal, Gibraltar could have a faced a hard land border with full passport checks, posing economic risks for the territory deeply dependent on some 15,000 Spaniards — almost half of Gibraltar’s workforce — who cross the frontier every day for work.
Leisure visits by people crossing both sides of the border would have been affected, too.
“People who are visiting family in Spain, or whose Spanish family is visiting them in Gibraltar. Children who are going to football matches and extracurricular activities, either in Spain or in Gibraltar. They will be able to do that without having to worry about frontier queues,” Picardo told The Associated Press in an interview.
The deal in effect brings the territory into the EU’s Schengen free travel area. At Gibraltar’s airport and port, entry and exit checks will be conducted by both U.K. and Spanish border officials. The arrangement is similar to what’s in place at Eurostar train stations in London and Paris, where both British and French officials check passports.
Gibraltar was ceded to Britain in 1713, but Spain has maintained its sovereignty claim ever since. Relations between the two countries on the issue of Gibraltar have had their ups and downs over the centuries. The treaty that removed the border fence does not resolve the territory’s contested status.
In Britain’s 2016 Brexit referendum, 96% of voters in the Rock, as the territory is popularly known in English, supported remaining in the EU.
Travelers to Gibraltar from countries outside the Schengen area — including the U.K. — will have to contend with the EU Entry-Exit System, or EES, which was rolled out in Europe in April and replaced passport stamps with biometric data collected through photographs and digital fingerprints.
With the border fence gone, Gibraltar officials have set up live facial recognition cameras at entry points and throughout the territory.
Chief Minister Picardo said the territory will have many more CCTV cameras, and that it has increased its police presence as well as resources for customs and Coast Guard agencies.
“The fortress has become a digital fortress now,” Picardo said.
People queue to cross the border between Spain and Gibraltar, in La Linea de la Concepcion, Spain, Monday, July 6, 2026. (AP Photo/Marcos Moreno)
A Spanish Guardia Civil officer holds a sign during the dismantling of a border checkpoint that separated Spain from the disputed British overseas territory of Gibraltar in La Línea de la Concepción, Spain, Monday, July 6, 2026. (AP Photo/Marcos Moreno)
People queue to cross the border between Spain and Gibraltar, in La Linea de la Concepcion, Spain, Monday, July 6, 2026. (AP Photo/Marcos Moreno)
Against the backdrop of the Rock of Gibraltar, workers dismantle a Spanish border checkpoint that separated the disputed British overseas territory from Spain in La Línea de la Concepción, Spain, Monday, July 6, 2026. (AP Photo/Marcos Moreno)
Against the backdrop of the Rock of Gibraltar, workers dismantle a Spanish border checkpoint that separated the disputed British overseas territory from Spain in La Línea de la Concepción, Spain, Monday, July 6, 2026. (AP Photo/Marcos Moreno)
