Paramount Accuses Netflix of 'Panic-Level' 'Scorched-Earth Campaign' to 'Poison' Regulators Against Warner Bros. Deal

Key Points:

• Paramount Skydance's chief legal officer, Makan Delrahim, accused Netflix of aggressively lobbying regulators and stakeholders to oppose Paramount's $111 billion merger with Warner Bros. Discovery (WBD), describing Netflix's tactics as a "scorched-earth campaign" driven by fear of competition.
• Netflix, which initially pursued the Warner Bros. streaming and studios assets before Paramount outbid them, denied these allegations, stating it has moved on and that regulatory approval is the appropriate decision-making process.
• The International Brotherhood of Teamsters submitted a white paper urging the DOJ to block the merger unless significant safeguards against job cuts and support for U.S. production are implemented; Paramount countered these concerns by asserting the merger will increase content production and labor opportunities.
• Delrahim challenged comparisons to Disney’s acquisition of 21st Century Fox, arguing that the industry context differs significantly and that the merged company plans to release at least 30 films annually, aiming to compete effectively with other major streaming platforms.
• Regulatory scrutiny is intensifying, with the UK’s Competition and Markets Authority launching an investigation and U.S. state attorneys general considering antitrust litigation; the merged entity would have significant foreign investment, including $24 billion from Middle Eastern sovereign wealth funds.