Paramount has condemned Netflix for what it described as a “scorched-earth campaign” designed to derail its $110 billion merger with Warner Bros. Discovery (WBD). In a letter to the U.S. Department of Justice, Paramount’s chief legal officer accused Netflix of attempting to sway regulators and stakeholders against the deal by portraying it negatively.
The company argued that Netflix’s intense reaction reveals David Ellison’s WarnerSkydance as a formidable competitor in the entertainment market. Paramount maintained that the merger will generate more opportunities, not fewer, for film and television workers nationwide, pushing back against concerns raised by the International Brotherhood of Teamsters.
The Teamsters had urged the Justice Department to block the WarnerMount deal unless strict protections were put in place to safeguard domestic production and jobs. Paramount countered that the consolidation would actually boost organized labor by injecting fresh competition and increasing investments in content.
According to Paramount’s letter, combining with WBD is a strategic move to build a stronger, more efficient rival to Netflix and other major streamers like Amazon MGM, Disney, and Apple. The merger is expected to drive up content creation across the industry as competitors respond to the new market dynamics.
Amid these developments, Paramount also faces legal challenges from a coalition of state attorneys general poised to file a lawsuit to halt the merger. California’s Attorney General flagged multiple concerns during his investigation and emphasized readiness to intervene if necessary. His office continues its active review but has not disclosed further details.