The Department of Economic Opportunity for Los Angeles and Los Angeles County Film Office has released a report on its projection of the losses for the city if Paramount succeeds in its acquisition of Warner Bros. Discovery.

An initial 60 day report stated “a potential loss of 15,567 corporate roles that overlap across both companies, with 6,099
shared, and 2,495 jobs specifically in Los Angeles County.”

The 120-day final report has been released and highlights risks to numerous groups such as “regulators, workers, investors, and state and local governments” if the merger succeeds.

For Los Angeles County specifically, the final report projects:

• If the merger goes through, about 4,500 film and TV jobs in Los Angeles County could be lost over the three-year period when the companies combine operations.

• In total, 10,360 job years could be at risk, including:
  • 2,661 indirect jobs at small businesses that support production — such as prop houses, printers, transportation companies, and other vendors.
  • 3,204 induced jobs that exist because film and TV workers spend money in the local economy — including restaurants, retailers, and service providers.

The economic impact of losing these jobs is significant. At stake:

• $1.26 billion in wages
• $2.78 billion in economic value
• $4.06 billion in total business output
• $547 million in tax revenue, including $78.6 million in local taxes — most of which (63%) comes from property taxes.

The report raises the concern that job losses would occur through:

• Slate consolidation (fewer buyers = fewer greenlights) – There would be fewer unscripted/talk shows and related opportunities for Los Angeles-based crews.

• Talent deals at risk – There’s 895 creators with exclusive deals between the two companies. If there’s less development, work would be lost.

• Location decisions shifting production away – The new post-merger company would likely shift production away from Los Angeles.

• Cost of living and Tax Credit Incentives Pressure – LA County and California has a high cost of living and there’s increased competition to court productions through tax credit incentives.

Currently, a dozen attorneys general are fighting the merger between Paramount and Warner Bros. Discovery in an antitrust lawsuit along with a lawsuit by the Writers Guild of America. This report is sure to add fuel to the fire and help the fight to try and prevent the deal to go through.

You can read the full report below.