Tony Gilroy Warns Paramount-Warner Bros. Merger Will ‘Destroy’ Hollywood’s Mid-Budget Landscape

During the world premiere of his new film “Behemoth!” at the New York Film Festival, director Tony Gilroy issued a stark warning about the ongoing Paramount-Warner Bros. merger. Produced on a $36 million budget, the adult-oriented drama represents the kind of mid-budget project that has historically sustained Hollywood’s theatrical sector and allowed creators to build their careers. Gilroy expressed concern that the consolidation of these two historic studios under David Ellison’s Skydance poses a direct threat to the “healthy and beautiful business” he has been part of for more than 30 years.

Speaking to Variety on Friday night at Alice Tully Hall, Gilroy pushed back against the narrative that the film industry is in decline. He argued that public enthusiasm for cinema remains strong and condemned the corporate restructuring as a tragic destruction of the architectural foundation that supports the business, all in service of venture capital interests.

Starring Pedro Pascal as a cellist returning to Hollywood film scoring, “Behemoth!” marks Gilroy’s first major feature since concluding work on the Emmy-winning series “Andor.” The film was selected as the centerpiece of the 64th New York Film Festival, positioned between James Gray’s opening-night screening of “Paper Tiger” and Ava DuVernay’s closing-night documentary “14th.” Gilroy praised the festival’s curation, calling the lineup exceptional and a welcome bright spot amidst the current turmoil in Hollywood.

He also thanked Matt Greenfield and Searchlight Pictures, a Disney-owned indie studio that co-produced the film, for their support. “This is not an easy movie to greenlight, and it’s not an easy movie to sell,” Gilroy said, adding that the team arrived at the premiere with their morale intact. “We got here calmly, gracefully, no drama, and our joie de vivre intact.”

The merger, tentatively scheduled to close on Tuesday, Oct. 6, will reduce the number of major corporate owners controlling Hollywood’s traditional Big Five studios—Disney, Universal, Sony, Warner Bros., and Paramount—from five to four. While Ellison has stated that Paramount and Warner Bros. will maintain separate identities, industry insiders including “Behemoth!” producer Sanne Wohlenberg fear the consolidation will severely limit opportunities for filmmakers.

“God, it’s certainly turbulent and uncertain times, isn’t it? It never seems to get any easier,” Wohlenberg said. She acknowledged that while the industry has weathered difficult periods before, the current shift is concerning. She warned that the merger will likely diminish the competitive nature of the market and restrict creative possibilities, though she expressed hope that the industry will survive and eventually return to better times.