Gallego to Warner Bros. Discovery-Paramount Merger: Explain How this Won’t Hurt Arizonans

In a letter to the DOJ’s Antitrust Division, Gallego questions how the merger will impact Arizona businesses and consumers WASHINGTON – Senator Ruben Gallego (D-AZ) today sent a letter to the United States Department of Justice (DOJ) pushing the Department for answers on the recently announced merger between Warner Bros. Discovery and Paramount, particularly how the merger will impact job losses and workforce reductions in Arizona. The merger “would combine two of the largest vertically integrated film studios with prominent streaming platforms, further concentrating decision-making power in this already consolidated market. Labor organizations in the industry have raised concerns that increased concentration can reduce competition among employers, limit opportunities for workers, and place downward pressure on wages and working conditions. Recent reporting also indicates that similar transactions have resulted in layoffs and workforce reductions across the entertainment sector,” Gallego wrote in the letter . The Copper Courier: Arizona senator warns Hollywood’s media merger will kill jobs As the letter indicates, Arizona would be severely impacted by the merger. In the state: Arizona has 80 theatres across our state, putting films on 869 screens ; Twenty different theatrical exhibition companies operate in-state and eight are headquartered here; For every dollar spent at a movie theater, an estimated additional $1.50 is spent at nearby businesses, including restaurants, retail outlets, and transportation; and Arizona movie theatre related spending supported 11,607 jobs, generated $530.1 million in labor income, and produced $1.64 billion in total output in 2023, including especially significant impacts in Maricopa and Pima Counties. Gallego continues : “Past consolidation in the media sector also suggests that increased concentration can expand the market power of major studios, giving them greater leverage over production, distribution, and exhibition. Across theatrical distribution, market share is concentrated among a small number of major studios that collectively account for most domestic box office revenue.” Read the full letter HERE . The recently announced merger, which critics have indicated is a “ potentially corrupt acquisition ,” comes after the Netflix CEO—who was competing for the acquisition—was summoned to the White House for a closed-door meeting with President Trump. Recently released financial disclosure documents show President Trump purchased Paramount and Warner Bros. Discovery securities in March 2026. Gallego’s letter builds on his track record standing up for Arizona families and against corporations who seek to make a profit at their expense. Read More: Gallego, Senators Call for Investigation into Corporate Landlord for Hiking Rent for Military Families Senator Gallego: “We’re here to even the playing field between the corporations and the consumer.” Gallego Backs Bill to Lower Drug Costs and Hold Big Pharma Accountable for Price Hikes