Paramount Skydance has publicly accused Netflix of orchestrating a 'scorched-earth campaign' to undermine its $110 billion acquisition of Warner Bros. Discovery, according to a letter sent by Paramount Skydance's chief legal officer, Makan Delrahim, to the Justice Department [1]. The letter alleges that Netflix has been attempting to 'poison regulators and other stakeholders' against the merger, which would combine two major Hollywood studios and their streaming platforms, potentially reshaping the American entertainment industry [1].
Netflix responded to these allegations by calling them 'absurd.' A Netflix spokesperson stated, 'We walked away from this deal months ago and remain focused on our own business, not theirs,' emphasizing that the decision on the merger ultimately rests with regulators [1].
The merger process has been contentious, with Paramount Skydance winning a bidding war against Netflix for Warner Bros. Discovery in late February, and WBD shareholders approving the deal in late April [1]. The Justice Department is still reviewing the merger, and no immediate comment was provided by the agency [1].
The International Brotherhood of Teamsters, a labor union representing film and television set workers, has also voiced opposition to the deal, arguing in a March report to the Justice Department that the acquisition 'poses a direct threat' to workers and urging regulators to block the deal unless safeguards are implemented to protect jobs and increase domestic production [1]. Delrahim's letter rejects these concerns, asserting that organized labor will benefit from increased content investment and competitive energy resulting from the merger [1].
Paramount Skydance further accuses Netflix of waging a 'broader proxy war,' including efforts to persuade stakeholders that Disney's 2019 acquisition of 21st Century Fox negatively impacted content production and labor opportunities. Delrahim disputes this narrative, stating that Netflix's 'sky is falling' rhetoric does not reflect reality [1].
CONCLUSION
The Paramount Skydance–Warner Bros. Discovery merger faces significant scrutiny from both industry competitors and labor unions, with Netflix denying any campaign against the deal. The outcome remains uncertain as the Justice Department continues its review, and the debate highlights the high stakes and competitive tensions in the entertainment industry.