Paramount Skydance Accuses Netflix Of Undermining Warner Bros-Discovery Acquisition

(RTTNews) - Paramount Skydance Corporation (PSKY) has accused Netflix of running a "scorched-earth campaign" against its proposed $111 billion bid for Warner Bros. Discovery, as revealed in a letter to the U.S. Department of Justice.

In a letter dated June 5, Paramount's Chief Legal Officer, Makan Delrahim, claimed that Netflix sought to sway regulators and others to oppose the deal. He pointed out that Netflix's response seemed driven by worries about facing a tougher competitor in the streaming and entertainment industry.

This letter was a reply to concerns raised by the International Brotherhood of Teamsters, which urged the Justice Department to halt the acquisition unless there were safeguards for film and TV workers. The union highlighted that big media mergers often lead to job cuts and fewer opportunities in production.

Paramount dismissed these fears, arguing that the deal would actually boost content creation and generate more jobs for union workers. The company reiterated its commitment to releasing at least 30 films a year and ramping up TV production, suggesting that increased output would lead to more work in areas like transportation, location services, and casting.

Netflix, however, responded to the accusations by labeling them as "absurd," stating that it stepped back from pursuing Warner Bros. Discovery months ago and is concentrated on its own operations.

The proposed deal is still being examined by the U.S. Department of Justice and Rob Bonta's office. If it gets the green light, the new company will combine Paramount+ and HBO Max into one streaming service, potentially amassing around 200 million subscribers and boosting its competitiveness against bigger players like Netflix, which reported over 325 million subscribers earlier this year.