For decades, Hollywood has been defined by the 'Big Five' studios, the powerhouse players shaping everything from blockbuster franchises to awards contenders: The Walt Disney Company, Warner Bros. Discovery, Paramount Global, NBCUniversal, and Sony Pictures Entertainment. These giants have long defined the industry’s balance of power, but that structure now looks like it could shrink.

With Paramount moving to acquire Warner Bros., the idea of a 'Big Five' suddenly feels outdated, potentially turning into a 'Big Four' overnight.

But here is the twist, Paramount and Warner Bros. may not actually be merging the way everyone expects.

David Ellison emphasized in a Thursday letter to California lawmakers Sen. Adam Schiff and Rep. Laura Friedman that a merger between Paramount and Warner Bros. Discovery would preserve jobs. Ellison, now steering Paramount, also promised that the approximately $110 billion merger will not swallow studios whole.

“My promise to you is to build a stronger Hollywood, by keeping both of these legacy studios operating separately, thereby preserving and potentially increasing jobs,” Ellison wrote in the letter obtained by The Hollywood Reporter.

It is clear from Ellison's letter that Paramount and Warner Bros. Discovery will operate separately to safeguard and grow Los Angeles jobs. Each commits to fifteen theatrical films yearly with at least forty-five-day exclusive cinema runs, stretching longer for blockbusters, while HBO stays intact with fresh licensing gigs for talent.

He pitches this as Hollywood’s reboot: preserving world-class crews, boosting global stories, and pushing federal tax incentives to lure megaprojects back home. However, Rep. Friedman demands concrete metrics over words, as crews await real paycheck security. 

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While the merger plan focuses on keeping operations separate, Warner Bros. is already investing heavily in its own production future.

Warner Bros. has launched The Ranch, a massive new production campus less than a mile from its iconic main lot. Spanning nearly one million square feet, it boasts sixteen soundstages, a construction workshop, office spaces, and support facilities. Opening earlier this year, it already secured commitments from four TV shows, with all stages certified by the California Film Commission for subsidy eligibility.

This addition cements Warner Bros. Discovery’s status as a top soundstage operator, bringing their total to fifty stages: thirty on the main lot, four at Burbank Studios, and sixteen at The Ranch. Executives highlighted during a Hollywood Reporter tour how it bolsters film and TV physical production, drawing in-house showrunners eager to shoot on company property over rented spaces.

Meanwhile, Paramount CEO David Ellison’s push to keep Paramount and Warner Bros. operating separately to protect Hollywood jobs feels even more grounded when you see Warner Bros. actively expanding its own production footprint with the new Ranch campus, showing both sides are committed to sustaining local crews and creative work rather than letting consolidation wipe out opportunities.

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What do you think about Paramount CEO wanting them to stay apart to save jobs? Let us know in the comments