FOR IMMEDIATE RELEASE
June 18, 2026
Media Contact
Angela Herrera Perez
press@opportunity.lacounty.gov
LA County Releases Interim Report on Potential Economic and Workforce Impacts of Paramount Skydance Acquisition of Warner Bros. Discovery
Nearly 2,500 local positions likely exposed, signaling broader risks to the entertainment economy
Los Angeles, CA — Today, the Los Angeles County Department of Economic Opportunity (DEO), the LA County Film Office, and Chief Executive Office released a 60-day interim report evaluating the potential economic and workforce impacts of the proposed Paramount Skydance acquisition of Warner Bros. Discovery. The report is in response to a March 17, 2026, motion authored by Supervisor Lindsey P. Horvath and approved by the Los Angeles County Board of Supervisors.
To conduct the analysis, DEO and the LA County Film Office retained CVL Economics, a Los Angeles-based economic consulting firm with expertise in the media and entertainment industry. The report serves as an interim assessment, with a final 120-day report expected in August 2026, which will include additional analysis and recommendations to support workers, businesses, and the long-term resilience of Los Angeles County’s entertainment economy.
“In Los Angeles County, the entertainment industry has long been our economic and cultural engine, and we have to fight like hell to protect it. This deal increases the threat to jobs, workers, and communities that are already under attack. Nothing is off the table when it comes to protecting our workforce, our economy, and the future of the entertainment capital of the world. We’ve already seen this movie and know what happens when corporate consolidation puts billionaires’ interests ahead of working people – no need for a sequel,” said Third District Supervisor Lindsey P. Horvath.
The report identifies two primary areas of concern: potential impacts to employees in overlapping corporate functions, and broader risks to both production employment and the regional production ecosystem. CVL Economics found that Los Angeles County has the largest concentration of overlapping functions between the two companies, with approximately 2,495 potentially redundant positions located locally. While this figure should not be interpreted as a layoff forecast, the report identifies these roles as those most immediately exposed to potential consolidation-related workforce impacts.
The analysis also notes that the combined company would carry approximately $82 billion in gross debt and pursue more than $6 billion in projected savings, increasing pressure to consolidate corporate operations, technology systems, real estate, and administrative functions.
“The findings reinforce what workers, employers, and small businesses have been telling us for years: our entertainment economy remains in a fragile recovery period,” said Kelly LoBianco, DEO Director. “Under the leadership of the Board of Supervisors, DEO and the LA County Film Office are taking a proactive approach to understanding potential risks and preparing solutions that protect workers, businesses, and the long-term competitiveness of our creative economy.”
As a result of a March 2026 Board motion by Supervisor Lindsey P. Horvath, DEO and the LA County Film Office are developing a workforce action plan that leverages the County’s America’s Job Centers of California, High Road Training Partnerships, and Rapid Response services to include coordination with State agencies to ensure that dislocated workers have expedited access to unemployment and health care services. The County is also exploring targeted career navigation and job placement support for workers who may be affected by future industry restructuring.
“This interim report is designed to size the risk, not to predict layoffs. Mergers of this scale rarely affect every market equally. A combined company carrying roughly $82 billion in debt and targeting more than $6 billion in savings will consolidate corporate, technology, and administrative functions, which overlap most heavily in Los Angeles County and New York. For the regional economy, one can take seriously the optimistic case that the combined company could substantially increase its theatrical and television output. The more important question is where principal photography and post-production activity will take place. Given the trajectory of local production in recent years, Los Angeles is not well positioned today to capture much of that hypothetical increase,” said Adam Fowler, CVL Economics Co-Founder.
Los Angeles County’s creative economy supports more than 312,000 workers, including approximately 171,155 entertainment sector jobs. The report comes as the industry continues to recover from the production contractions due to the COVID-19 pandemic, the 2023 Hollywood labor strikes, and the January 2025 wildfires. FilmLA data shows production activity in the County declined 16 percent in 2025 compared to 2024.
Los Angeles County has already invested significant resources to support the entertainment ecosystem during recent disruptions, including $4 million awarded to 363 small and micro businesses through the Entertainment Business Interruption Fund.
Download the report at: opportunity.lacounty.gov/lacountyfilmoffice/
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About DEO: About DEO: The LA County Department of Economic Opportunity (DEO) has a vision for a more equitable economy with thriving communities, inclusive and sustainable growth, and opportunity and mobility for all. The department, with its America’s Job Centers of California, Office of Small Business, and hundreds of programs and partners, creates quality jobs, helps small businesses and high-road employers start and grow, and builds vibrant communities and spaces. Stay connected with DEO! Follow @EconOppLA on Twitter, Facebook, and Instagram, subscribe to our newsletter, or visit opportunity.lacounty.gov to learn about DEO services.