The battle over Paramount’s proposed acquisition of Warner Bros. Discovery is getting increasingly ugly. Just days after Paramount Skydance chief legal officer Makan Delrahim accused opponents of the deal of engaging in “fear-mongering,” the company’s top lawyer is now directly accusing Netflix of orchestrating a campaign designed to derail the merger.
Netflix, for its part, is dismissing the allegations by Paramount as “absurd” and insisting it moved on from the deal months ago.
The latest exchange highlights the growing tensions surrounding Paramount’s proposed $111 billion acquisition of Warner Bros. Discovery, a transaction that has drawn scrutiny from regulators, labor groups, and competitors alike.
Paramount Claims Netflix Is Trying to “Poison” Regulators
According to a June 5 letter sent by Delrahim to attorneys in the Department of Justice’s Antitrust Division, Paramount believes Netflix is actively working behind the scenes to undermine the merger.
Delrahim wrote: “Netflix’s panic-level response and scorched-earth campaign to try and poison regulators and other stakeholders against the Transaction shows just how seriously Netflix takes Paramount as a scaled competitor.”
The accusation stems from concerns raised by the International Brotherhood of Teamsters, which submitted a white paper to the Justice Department earlier this year urging regulators to block the merger unless significant protections for workers are included.
Paramount Pictures Logo – YouTube, ClosingLogosHD
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The union argued that consolidation within Hollywood could lead to fewer productions, reduced competition, and job losses across the entertainment industry.
Delrahim, however, suggested Netflix has been encouraging those concerns as part of a broader effort to stop the transaction.
Paramount Says Netflix Is Pushing a “Sky Is Falling” Narrative
One of Paramount’s primary complaints centers on comparisons between the proposed Paramount-Warner Bros. Discovery merger and Disney’s acquisition of 21st Century Fox in 2019.
Critics of the Paramount deal have pointed to the Disney-Fox merger as an example of how consolidation can reduce output and eliminate jobs. Delrahim argues that comparison is misleading and claims Netflix has been promoting it to regulators and labor organizations.
A graphic showing the Netflix and Warner Bros. Logos – Netflix
In his letter, Delrahim wrote: “We understand that as part of its broader proxy war against the Transaction, Netflix has tried to persuade the Teamsters and other stakeholders that Disney’s acquisition of Fox had a negative impact on content production and labor opportunities. Frankly, Netflix’s ‘sky is falling’ narrative departs significantly from the ground-truth reality of what actually happened.”
Paramount has repeatedly argued that the Disney-Fox merger is not an appropriate comparison, pointing to factors such as Disney’s strategic decisions before the acquisition and the disruptions caused by the global lockdowns of 2020.
The company has also claimed that a combined Paramount and Warner Bros. Discovery would actually increase content production rather than reduce it. Paramount chairman and CEO David Ellison has previously pledged that the merged company would release at least 30 theatrical films annually.
Netflix Calls Paramount’s Claims “Absurd”
Netflix wasted little time responding.
In a statement provided to Variety, a Netflix spokesperson rejected Paramount’s accusations outright.
“These claims from Paramount Skydance are absurd,” they said.
The company also denied that it is actively working against the merger.
“We walked away from this deal months ago and remain focused on our own business, not theirs. Ultimately, it’s up to the regulators to approve this deal and determine if it is in the best interest of the industry and all concerned.”
Netflix Co-CEO Ted Sarandos – YouTube, WSJ News
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Netflix had previously pursued Warner Bros. Discovery’s streaming and studio assets before ultimately exiting the process after Paramount increased its offer.
The streaming giant’s response suggests it has little interest in being portrayed as the driving force behind opposition to the merger.
Delrahim Escalates With Antisemitism Allegation
The latest comments come only days after Delrahim sparked controversy during an interview with the Los Angeles Times.
Speaking about critics of the merger, Delrahim claimed some opposition extends beyond normal antitrust concerns.
The Logo for Netflix – Netflix
“There’s a lot of fear-mongering, particularly from people in Washington, D.C. They are running a political campaign,” he said. “Some of these people are trying to inflict harm on this transaction really because of their own antisemitic views.”
The remark immediately drew attention because Delrahim did not identify who he was referring to or provide evidence supporting the allegation.
As noted by Variety, Delrahim has not identified which opponents of the Paramount-WBD merger allegedly hold “antisemitic views.”
The statement nevertheless represents a significant escalation in the increasingly public battle over the transaction.
Regulators Continue Scrutinizing the Deal
The dispute arrives as the proposed merger faces growing regulatory pressure on both sides of the Atlantic.
The United Kingdom’s Competition and Markets Authority announced this week that it has launched an investigation into the transaction. Meanwhile, Paramount is still awaiting final approval from the Department of Justice in the United States.
The logo for Paramount Skydance – Paramount
The deal also faces potential legal challenges from state attorneys general who are reportedly considering litigation aimed at blocking the merger on antitrust grounds.
With labor groups raising concerns, regulators reviewing the transaction, and competitors publicly trading accusations, the fight over Paramount’s bid for Warner Bros. Discovery appears far from over.
What began as one of the biggest media acquisitions in Hollywood history is increasingly becoming a public war of words between some of the industry’s largest players.
Do you think Netflix is trying to sabotage the Paramount WB deal? Sound off in the comments and let us know!
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