Paramount Alleges Netflix Sabotaged $110 Billion WBD Deal as UK Opens Merger Probe
Updated
Updated · NBC News · Jun 9
Paramount Alleges Netflix Sabotaged $110 Billion WBD Deal as UK Opens Merger Probe
3 articles · Updated · NBC News · Jun 9
Summary
A June 5 letter to the Justice Department shows Paramount Skydance accusing Netflix of running a “scorched-earth campaign” to sway regulators and stakeholders against its $110 billion Warner Bros. Discovery acquisition.
Makan Delrahim, Paramount’s chief legal officer, said Netflix used a “panic-level response” and a broader “proxy war” through labor and industry voices because it sees the combined company as a stronger rival; Netflix called the claims “absurd.”
The letter directly rebuts a March Teamsters submission urging DOJ to block the deal unless job and domestic-production safeguards are imposed, arguing workers would benefit from higher content investment after the merger.
Regulatory pressure is widening: California Attorney General Rob Bonta is investigating, the UK antitrust authority formally opened a probe Tuesday, and more than 1,000 actors, producers and directors opposed the tie-up in April.
The merger, approved by WBD shareholders in late April after Paramount beat Netflix in February’s bidding, would combine two major studios and streaming platforms under one roof if U.S. regulators clear it.
Past mergers meant higher prices and canceled shows. Why should consumers believe this Hollywood mega-deal will be different?
Can a media giant born with nearly $80 billion in debt truly compete, or is it destined for a debt-fueled collapse?
With foreign funds owning nearly half the company, who will truly control the news at outlets like CNN and CBS?
Paramount’s $111 Billion Warner Bros. Discovery Takeover: Regulatory Scrutiny, Netflix Opposition, and the Stakes for Hollywood
Overview
The proposed $111 billion acquisition of Warner Bros. Discovery by Paramount Skydance is facing intense regulatory scrutiny, with the Justice Department and California Attorney General Rob Bonta emphasizing that approval is not guaranteed. Amid this pressure, Paramount’s chief legal officer, Makan Delrahim, accused Netflix of trying to derail the merger, which Netflix strongly denied. Delrahim has also promoted the merger’s benefits, claiming it will boost investment in Hollywood content and support organized labor. This high-stakes battle highlights both the fierce competition among media giants and the significant regulatory and industry challenges shaping the future of media consolidation.