Paramount Skydance has accused Netflix of orchestrating a “scorched-earth campaign” to undermine its proposed $110 billion acquisition of Warner Bros. Discovery (WBD). In a letter dated June 5, addressed to the U.S. Department of Justice’s Antitrust Division, Paramount’s Chief Legal Officer, Makan Delrahim, alleged that Netflix is attempting to “poison regulators and other stakeholders” against the merger. Delrahim stated that Netflix’s aggressive opposition indicates the streaming giant’s recognition of Paramount as a formidable competitor. ([thewrap.com](https://www.thewrap.com/industry-news/deals-ma/paramount-slams-netflix-teamsters-merger-concerns-doj-letter/?utm_source=openai))
This accusation follows concerns raised by the International Brotherhood of Teamsters, which represents 15,000 motion picture workers. In March, the union urged the DOJ to block the merger unless enforceable safeguards are implemented to protect domestic production and jobs. The Teamsters cited previous industry consolidations, such as Disney’s acquisition of 21st Century Fox in 2019, which they claim led to job losses and project cancellations. ([benzinga.com](https://www.benzinga.com/m-a/26/06/53082468/paramount-accuses-netflix-of-waging-scorched-earth-campaign-to-derail-warner-bros-discovery-deal-report?utm_source=openai))
In response, Delrahim argued that the Paramount-WBD merger would not reduce work opportunities but rather create new ones. He emphasized that the combined entity’s content strategy aligns with the interests of organized labor, leading to increased production and, consequently, more employment opportunities. ([mediaite.com](https://www.mediaite.com/media/news/paramount-accuses-netflix-of-scorched-earth-campaign-to-poison-warner-bros-discovery-deal/?utm_source=openai))
As the merger undergoes regulatory scrutiny, including a formal Phase 1 investigation by the UK’s Competition and Markets Authority, the entertainment industry remains attentive to the potential implications of this consolidation. ([thewrap.com](https://www.thewrap.com/industry-news/deals-ma/paramount-warner-bros-discovery-uk-competition-and-markets-authority-phase-1-investigation-launch/?utm_source=openai))