Paramount accuses Netflix of smear campaign against WBD merger
Paramount accuses Netflix of smear campaign against WBD merger
The streamer is accused of working behind the scenes to turn others in Hollywood against the deal.
Are sour grapes causing Netflix to try to poison the well concerning the Paramount Skydance and Warner Bros. Discovery merger? That’s the accusation leveled by Paramount in a newly publicized letter to the Department of Justice. The letter says that Netflix is stirring up trouble behind the scenes to create more opposition to the deal, while Paramount continues to defend the merger as a long-term positive for Hollywood.
Key Details:
- Seeing red: Paramount is blasting Netflix for allegedly attempting to poison its deal with WBD.
- Competitive drive: Specifically, the letter accuses Netflix of stirring up concerns brought by the Teamsters’ union.
- Same story: Paramount continues to argue its merger with WBD will lead to better competition and more opportunities.
The letter accuses Netflix of trying to “poison regulators and other stakeholders” against Paramount’s merger with WBD, waging a “scorched-earth campaign” behind the scenes in Hollywood to drum up opposition to the agreement.
Written by Paramount’s chief legal officer, Makan Delrahim, and addressed to the Department of Justice, the letter is a response to a report filed by the International Brotherhood of Teamsters in March. In the report, the union says that Paramount’s merger with WBD “poses a direct threat to film and television workers nationwide.” It cites Disney’s acquisition of Fox entertainment assets in 2019, saying that the deal led to job losses and project cancellations.
In its response, Paramount pushes back by saying that the merger will directly benefit unions in Hollywood and that work opportunities will not decline after the merger. It also says that Disney’s purchase of Fox assets has led to an increase in content production overall, and accuses Netflix of trying to unjustly rile up the Teamsters.
“Paramount’s content strategy aligns directly with the Teamsters’ interests,” Delrahim insists in the letter. “More films and series in production means more call sheets, more location days, more transportation, casting, and catering work. The combined company will have no incentive to shrink the production engine that drives its competitiveness. Increasing production volume is the central pillar of how Paramount intends to compete.”
Paramount’s $111 billion deal to purchase WBD appears poised to receive approval from the Department of Justice, but other regulatory hurdles remain. Nevertheless, the company expects the transaction to close by the third quarter of 2026, if not sooner.
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