Paramount Alleges Netflix is Sabotaging Merger

Paramount’s Skydance has accused Netflix of launching a “scorched earth” campaign aimed at undermining the merger deal between Paramount and Warner Bros. Discovery, which is currently pending federal approval.

Makan Delrahim, Paramount’s chief legal officer, expressed these concerns in a letter dated June 5, stating that Netflix is attempting to “poison regulators” against the merger. According to reports, this accusation highlights how worried Netflix is about the competition from Paramount.

“Netflix’s extreme reaction shows how seriously it views Paramount as a significant rival,” the letter mentioned.

Initially, Netflix was a contender for acquiring Warner Bros., but backed out once Paramount made a higher offer.

Furthermore, Paramount is addressing the International Brotherhood of Teamsters’ objections to the merger, as the union fears job losses for its members if the studios combine. Paramount, however, challenges this narrative.

Delrahim stated, “The merger will not reduce job opportunities for Teamsters and other organized labor.” He argued that it will actually create more work for union members.

“Paramount’s content strategy aligns with the interests of the Teamsters. Increasing productions means more call sheets, more locations, and more jobs across various fields,” he explained.

He emphasized that the merger’s positive impact on organized labor is rooted in the business logic behind it. By merging with WBD, Paramount aims to scale operations and compete more effectively against Netflix and other major streaming services.

Challenges still loom, as several politicians in Washington have voiced opposition to the merger, and California’s Attorney General Rob Bonita has expressed skepticism about it.