Paramount Skydance Accuses Netflix Amid Warner Bros. Discovery Merger

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, Paramount Skydance’s chief legal officer, Makan Delrahim, criticized Netflix’s reaction, suggesting Netflix sees Paramount as a serious competitor. Netflix hasn’t commented on the issue.

The letter, first reported by Politico, was sent Friday, and it highlights the competition between Paramount Skydance and Netflix for acquiring Warner Bros. Discovery. Paramount Skydance, owned by David Ellison, won the bid in February, with shareholders approving in April.

Regulators are reviewing the merger, which combines influential Hollywood studios and streaming services, changing the American entertainment industry. The Justice Department didn’t respond to requests for comments.

Delrahim responded to a Teamsters report, arguing Paramount’s acquisition threatens workers and advocating for safeguards to increase production and protect jobs. Delrahim rejected this, claiming organized labor would benefit from increased content investment.

The Teamsters and Netflix have been accused of influencing stakeholders against Paramount, pointing to past Disney-Fox merger consequences on labor. Delrahim disagreed and noted Disney increased content production post-merger.

Opposition from Hollywood professionals and scrutiny from California’s Attorney General and the UK’s antitrust authority pose challenges to the deal’s closure. David Ellison aims to honor historic companies while enhancing future media capabilities.

Delrahim, previously a U.S. Assistant Attorney General, has committed to releasing 30 feature films annually in theaters.