A major Hollywood merger is turning into a public battle, with Paramount Skydance accusing Netflix of actively working against its proposed $111 billion acquisition of Warner Bros. Discovery. The claim comes from a strongly worded filing sent to U.S. regulators, adding new tension to a deal that is already under intense scrutiny from both government officials and labor unions.
According to a letter obtained by POLITICO, Paramount’s legal chief Makan Delrahim accused Netflix of attempting to influence regulators and industry stakeholders. He alleged the company launched a “scorched-earth campaign” and tried to “poison regulators and other stakeholders” against the transaction. Delrahim further described Netflix’s reaction as a “panic-level response,” suggesting the streaming giant sees the combined company as a serious competitive threat.
Paramount Pushes Back Against Union Concerns
The accusations emerged as part of Paramount’s response to objections raised by the Motion Picture Teamsters, a union representing thousands of behind-the-scenes workers in film and television. The group had warned the Department of Justice that the merger could harm jobs and reduce opportunities across the industry.
Paramount strongly rejected that argument, positioning the deal as a growth opportunity rather than a risk. Delrahim wrote that the acquisition would “directly benefit” union workers by increasing the volume of film and television production. He stated clearly,
“Paramount acquiring WBD will not reduce work opportunities for the Teamsters or other organized labor.”
The company’s strategy centers on scaling up content output to compete in the streaming era. Delrahim emphasized that more productions would mean more work across departments, adding,
“More films and series in production means more call sheets, more location days, more transportation, casting, and catering work.”
This framing directly counters fears that consolidation would shrink job opportunities.
A Competitive Battle With Netflix at the Center
Paramount’s claims also highlight the growing rivalry between major studios and streaming platforms. Netflix, which reportedly stepped away from its own potential deal involving Warner Bros. earlier this year, has not publicly responded to the latest accusations. However, Paramount’s letter paints the situation as a broader competitive conflict rather than just a regulatory disagreement.
The proposed merger would significantly expand Paramount’s scale, combining its content library and Paramount+ platform with Warner Bros. Discovery’s assets, including HBO Max. Analysts estimate the unified streaming service could reach around 200 million subscribers, positioning it as a major challenger to Netflix, which reported over 325 million subscribers earlier this year.
Delrahim argued that this increased competition is exactly what the industry needs. He noted that the goal of the deal is to create a stronger entity capable of competing with global streaming leaders, stating that content investment remains the “central pillar” of Paramount’s strategy.
Regulatory Scrutiny and Industry Implications
Despite Paramount’s defense, the deal remains far from finalized. The Department of Justice is actively reviewing the acquisition, while California Attorney General Rob Bonta has also signaled that the transaction is “not a done deal.” Regulatory concerns largely focus on market consolidation and the potential impact on jobs and content diversity.
Labor groups have pointed to previous mergers as cautionary examples, including Disney’s acquisition of 21st Century Fox, which they argue led to layoffs and canceled projects. Paramount has pushed back on those comparisons, saying they fail to account for external factors like the COVID-19 pandemic, which disrupted production across the industry.
At the same time, Paramount maintains that the merger could trigger a broader ripple effect. The company suggested that competitors such as Netflix, Amazon, Disney, and Apple may respond by increasing their own production efforts, potentially creating more opportunities across Hollywood.
