Netflix trying to “poison regulators” about WBD merger, Paramount lawyer claims

Paramount Skydance has leveled serious allegations against Netflix, claiming the streaming giant is actively working against its proposed merger with Warner Bros. Discovery (WBD). In a letter dated June 5, addressed to officials at the U.S. Department of Justice’s Antitrust Division, Paramount's chief legal officer, Makan Delrahim, suggested that Netflix is trying to sway regulators and other stakeholders against the merger. Delrahim's letter stated that Netflix's aggressive response to the merger proposal demonstrates the company's concern about Paramount emerging as a significant competitor in the market. He described Netflix's actions as a 'scorched-earth campaign' aimed at influencing regulators negatively. This correspondence was a response to a previous letter from The International Brotherhood of Teamsters, which argued that the merger would jeopardize jobs in the film and television industries. The union, representing 1.3 million members, urged the DOJ to block the merger unless robust safeguards for domestic production and employment were established. In contrast, Delrahim argued that the merger would not diminish job opportunities for Teamsters or other unions. He claimed it would actually stimulate content creation across Paramount’s platforms, including streaming and broadcast channels. This, he asserted, would compel competitors to enhance their offerings as well. Delrahim further highlighted the potential for job growth among various industry professionals, including writers, directors, and support staff, as a result of increased production activities. He pointed to a prior merger with Skydance in 2025, which had already led to an uptick in content, including the renewal of 20 shows and plans to nearly double theatrical releases this year compared to earlier projections.