A recent report from the Los Angeles County Department of Economic Opportunity (DOEO) has raised significant concerns regarding the proposed Paramount-Warner Bros.

Discovery merger, particularly its potential impact on local employment and the broader entertainment industry.

The report, filed on June 18, suggests that the merger could jeopardize nearly 2,500 jobs within Greater Los Angeles County alone.

According to the DOEO report, approximately 2,495 jobs in Greater Los Angeles County and about 6,000 globally are at potential risk.

These roles are primarily in corporate, technology, real estate, and other shared functions, identified as duplicative across the two companies.

While the report clarifies that this is not a layoff forecast, it defines the scale of potential employment impacts due to consolidation.

The findings of the L.A.

County report are significant as they could influence ongoing legal and regulatory scrutiny of the Paramount-WBD merger.

The report specifically highlights the potential for legal action from state attorneys general, including California AG Rob Bonta.

Bonta's office has publicly stated that it is actively investigating the merger and coordinating with other states, with a decision on filing a lawsuit expected imminently.

The report notes that a state-level lawsuit and preliminary injunction could significantly delay or even derail the deal, despite recent approval from the U.S.

Department of Justice.

The L.A.

County report also advises its own County Counsel to submit formal comments to the U.S.

Department of Justice regarding antitrust concerns.

This recommendation underscores the county's apprehension about the merger's potential anti-competitive impacts and its commitment to monitoring actions taken by state attorneys general.

Paramount has responded to the critical report by emphasizing that the merger is a necessary response to the current state of the entertainment economy, aiming to ensure Los Angeles remains a global entertainment capital.

However, Paramount's statement did not directly address the report's specific concerns about job losses in the L.A.

County area.

Further complicating the merger's path, three Democratic senators—Cory Booker, Adam Schiff, and Elizabeth Warren—have urged the FCC to prevent the merger from closing until a review of foreign ownership is complete.

They have raised questions about the implications of 49.5 percent equity in the parent company of CBS, CNN, and 28 broadcast television stations being held by three foreign governments.