Paramount has publicly accused Netflix of orchestrating an aggressive campaign to derail its proposed acquisition of Warner Bros. Discovery, a deal valued at $111 billion. In a letter addressed to the Justice Department, Paramount’s chief legal officer alleged that Netflix is attempting to sway regulators and stakeholders against the merger through intense behind-the-scenes pressure.
The letter suggests Netflix views Paramount as a significant competitor and seeks to prevent the new combined entity from challenging the streaming giant’s market dominance. Paramount’s legal officer highlighted how Netflix has previously tried to convince stakeholders that Disney’s acquisition of 20th Century Fox in 2019 had negative ripple effects on production and labor, a claim Paramount disputes by citing broader industry impacts like the Covid-19 pandemic.
Paramount’s response also addresses concerns from the International Brotherhood of Teamsters, a union that has urged antitrust officials to block the merger unless safeguards for workers are established. The union warns that the merger could threaten jobs across the film and television industries.
In its letter, Paramount firmly denied claims that the merger would reduce employment opportunities for union workers. Instead, the company argued the combination with Warner Bros. Discovery would boost content output and generate more work for organized labor across various production roles, including transportation, casting, and catering.
Paramount framed the merger as a strategic move to create a stronger competitor capable of standing up to Netflix and other major streaming services, emphasizing the potential benefits for union employment tied to increased production.
The proposed merger remains under scrutiny by the Justice Department and the California Attorney General, who has cautioned that regulatory approval is not guaranteed. Paramount’s letter marks one of its clearest public efforts to attribute resistance to the deal to Netflix’s influence after the streaming service withdrew from the bidding process earlier this year.