The proposed merger between Paramount and Warner Bros. Discovery could put roughly 4,500 film and television production jobs in Los Angeles County at risk over the next three years, according to a new economic report commissioned by the county.

Prepared by CVL Economics, the report warns that combining the two entertainment giants could deepen an already significant decline in Los Angeles production. The region has lost around 52,000 film and television jobs over the past four years, and researchers argue that a merged Paramount-Warner Bros. would face additional pressure to cut costs and reduce debt, potentially resulting in fewer productions, consolidated slates and more projects moving outside Los Angeles.

The report also highlights concerns about reduced competition for projects. With Paramount and Warner Bros. operating as a single company, there would be one fewer major buyer commissioning film and television content, with unscripted, reality and talk programming expected to be particularly affected.

The impact could extend well beyond the estimated 4,500 direct production jobs. Researchers project that losses across supporting businesses and the wider local economy could bring the total impact to approximately 10,360 job-years. The study estimates as much as $1.26 billion in wages, $2.78 billion in economic value and $4.06 billion in total business output could also be at risk.

Los Angeles County Supervisor Lindsey Horvath requested an assessment of the merger’s economic impact in March. An earlier report released in June estimated that around 2,495 corporate positions in Los Angeles County could also be at risk as the companies consolidate overlapping departments including marketing, technology, real estate and other corporate operations. The latest analysis instead focuses primarily on jobs connected to film and television production.

Paramount has pushed back against the report’s conclusions, arguing that the findings demonstrate why the merger is necessary. The company says Hollywood is already dealing with declining production and employment and believes creating a stronger combined studio would help reverse that trend.

Paramount has pledged to invest approximately $30 billion annually in production and release at least 30 films per year across the two studios. The company argues that increased production would ultimately create more employment and provide greater long-term stability for the entertainment industry. However, Paramount has not committed to producing that content specifically in Los Angeles.

The merger remains on hold as it faces legal challenges. Twelve state attorneys general have filed an antitrust lawsuit seeking to block the transaction, with a trial currently scheduled for March 2027. The Writers Guild of America has also launched a separate legal challenge, raising concerns that further consolidation would reduce opportunities for writers. Paramount has additionally asked a federal court to require the plaintiffs to post a $1.88 billion bond while the deal remains blocked.

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