Paramount Skydance Responds to Netflix’s Allegations

Paramount Skydance has accused Netflix of running a destructive campaign against its $110 billion acquisition of Warner Bros. Discovery. In a letter to the Justice Department, Paramount Skydance chief legal officer Makan Delrahim criticized Netflix’s response to the merger, highlighting their concern about Paramount as a strong competitor.

Netflix has yet to comment on the situation. The letter, sent last Friday, was first reported by Politico. Both companies were interested in acquiring Warner Bros. Discovery, but Paramount Skydance, owned by David Ellison, came out on top in February. Warner Bros. Discovery shareholders approved the merger in late April.

Trump administration regulators are currently reviewing the merger. This deal would combine two major Hollywood studios and popular streaming platforms, potentially transforming the entertainment industry.

The Justice Department has not responded to comment requests. Delrahim’s letter was a response to a March report from the International Brotherhood of Teamsters, which represents film and television set workers. The union argued that Paramount’s acquisition of Warner Bros. Discovery threatens jobs and called for the deal to be blocked unless safeguards are implemented.

Delrahim countered this claim, stating that organized labor would benefit from increased competition and content investment resulting from the merger. Netflix was accused of attempting to influence stakeholders by suggesting that Disney’s acquisition of Fox harmed content production and labor opportunities. Delrahim rejected Netflix’s claims, citing Disney’s increased content spending since acquiring Fox.

Concerns aren’t limited to the Teamsters. Hundreds of Hollywood actors, producers, and directors have opposed the merger, fearing it would reduce competition in the media landscape. Additionally, the California Attorney General and the UK antitrust authority are investigating the transaction.

Ellison aims to honor the legacy of both companies while building a next-gen media firm. He plans to release at least 30 feature films annually in theaters. Delrahim, who joined Paramount Skydance last fall, was previously the U.S. Assistant Attorney General for the Antitrust Division during Trump’s presidency.