Paramount Skydance’s Allegations Against Netflix
Paramount Skydance has accused Netflix of leading a campaign to undermine its $110 billion acquisition of Warner Bros. Discovery. In a letter to the Justice Department, obtained by NBC News, Paramount’s chief legal officer, Makan Delrahim, criticized Netflix’s actions. He labeled it a “panic-level response” that highlights Netflix’s view of Paramount as a strong competitor.
Netflix has not responded to requests for comments on the matter. The letter was sent to the Justice Department on Friday and covered by Politico.
Bidding War and Stakeholder Reactions
Both Paramount Skydance and Netflix were interested in acquiring Warner Bros. Discovery, which owns HBO and CNN. Paramount, owned by David Ellison, ultimately secured the agreement in late February. Shareholders approved this merger in late April.
The merger, observed by Trump administration regulators, aims to combine two renowned Hollywood studios and prominent streaming platforms. This could alter the American entertainment landscape.
Response from Labor Unions and Industry Professionals
Delrahim’s letter responded to a previous report from the International Brotherhood of Teamsters. The Teamsters, representing workers in film and television production, argued the merger endangers jobs. They urged the Justice Department to intervene unless protections for job security and domestic production are enforced.
In contrast, Delrahim insists that organized labor will benefit from increased content investment driven by the merger. He rejected the Teamsters’ claims, arguing the deal will energize the entertainment sector.
Concerns Over Media Consolidation
Paramount also accused Netflix of influencing perceptions by suggesting parallels with Disney’s acquisition of Fox. Delrahim refuted claims that Disney’s $71.3 billion takeover of Fox harmed workers. He highlighted that Disney has increased its content production since acquiring Fox.
Numerous Hollywood professionals have voiced concerns about the Paramount-Warner deal, fearing reduced competition within the media landscape. An open letter, signed by over 1,000 industry figures, expressed these apprehensions.
Regulatory Probes and Future Commitments
The planned merger has attracted scrutiny from regulators, including California’s Attorney General Rob Bonta and the UK’s antitrust authority, both of whom have initiated investigations.
David Ellison has committed to honoring the legacies of the two companies while pursuing a forward-thinking media strategy. His plans include releasing at least 30 theatrical films annually.
Makan Delrahim, who joined Paramount Skydance as chief legal officer last fall, previously served as the U.S. Assistant Attorney General for Antitrust during President Trump’s administration.