Paramount accuses Netflix of ‘scorched-earth’ campaign to block WBD merger
A June 5 letter to the US Department of Justice claims Netflix is poisoning regulators against the deal, while the streaming service dismisses the accusations as absurd
Paramount Global has formally accused Netflix of orchestrating a concerted effort to derail its proposed acquisition of Warner Bros. Discovery (WBD). In a letter dated June 5 addressed to the US Department of Justice (DOJ) Antitrust Division, Paramount chief legal officer Makan Delrahim alleged that the streaming service is conducting a “scorched-earth campaign” to influence regulators and stakeholders against the transaction.
The correspondence responds to a March submission by the International Brotherhood of Teamsters, which urged the DOJ to block the merger unless enforceable safeguards for jobs and domestic production are implemented. Delrahim argued that the union’s concerns were being exacerbated by Netflix, which he claimed is attempting to “poison regulators” by suggesting the deal would harm the industry.
Delrahim disputed the Teamsters’ comparison of the proposed merger to Disney’s 2019 acquisition of 21st Century Fox. He argued that the Disney-Fox deal did not reduce labour opportunities, citing an increase in wide-release theatrical films in the US from 2019 to 2025. The letter also claimed Disney increased content spend from $5 billion in 2019 to an expected $24 billion in 2026, although source material notes discrepancies in these figures, with some analysts suggesting Disney’s 2019 spend was closer to $28 billion.
To support its case, Paramount pointed to its growth following the 2025 merger with Skydance, noting it has purchased or renewed 20 shows and nearly doubled its theatrical output. Delrahim stated the merger would create more opportunities for writers, directors, and skilled trade labour represented by the Teamsters. However, a January SEC filing indicated the combined entity expects to reduce content spending by less than 10 percent while aiming to save over $6 billion through operational efficiencies.
Netflix dismissed the allegations as “absurd,” stating it remains focused on its own business operations after walking away from its previous interest in acquiring Paramount. Separately, Delrahim alleged in an interview that some opponents of the deal in Washington, D.C., are motivated by antisemitic views, a claim he made without further explanation.
