Paramount Accuses Netflix of Lobbying Against Warner Bros. Discovery Merger
Paramount sent a letter to the U.S. Justice Department alleging that Netflix has campaigned to block its proposed merger with Warner Bros. Discovery, a claim Netflix called "absurd."
Paramount Pictures wrote to the Department of Justice’s Antitrust Division claiming that Netflix has mounted a campaign to persuade regulators and other stakeholders to oppose Paramount’s planned acquisition of Warner Bros. Discovery. The letter, signed by Paramount’s chief legal officer Makan Delrahim, said Netflix’s actions reflect “panic” over Paramount’s growth strategy and warned that the merger would increase competition and create more opportunities for labor unions.
Netflix responded that the accusations are unfounded, stating, "These claims from Paramount Skydance are absurd. 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."
The proposed transaction, valued at several billion dollars, would combine Paramount’s film and television assets with those of Warner Bros. Discovery. The companies have indicated they could achieve $6 billion in cost savings, primarily through reductions in technology, back-office functions and real-estate footprints, while pledging to increase content spending and maintain a robust theatrical release schedule.
Regulatory review is ongoing in the United States, the United Kingdom and the European Union, with deadlines set for July and August. Paramount has signaled willingness to offer remedies if required to secure approval. The merger follows a prior agreement in which Warner Bros. Discovery had considered selling its studio and streaming operations to Netflix, a deal that was later abandoned in favor of the current offer.
Delrahim also dismissed comparisons to the Disney-Fox merger, arguing that Netflix’s narrative about that deal is misleading. He said the Paramount-Warner Bros. Discovery combination would benefit organized labor and enhance overall content production.
The letter was first reported by Politico and obtained by Deadline on June 5.