Paramount Global has escalated its legal battle over its planned $15 billion merger with Warner Bros Discovery by accusing Netflix of orchestrating a campaign to undermine the deal with regulators and industry stakeholders. In a June 5 letter to US Department of Justice antitrust officials, Paramount’s chief legal officer Makan Delrahim framed Netflix’s actions as a desperate attempt to block competition it fears from the combined entity’s scale in entertainment production and distribution.
A high-stakes merger under antitrust scrutiny
The dispute centers on Paramount’s proposed acquisition of Warner Bros Discovery, a deal announced in 2025 and valued at approximately $15 billion. While the transaction awaits regulatory approval, Paramount has framed Netflix’s response as unusually aggressive. Delrahim, who previously served as Assistant Attorney General for the DOJ’s Antitrust Division, argued in his letter that Netflix’s efforts reflect a broader strategy to obstruct viable competitors in the streaming and film markets.
The letter responds directly to a March letter submitted to the DOJ by the International Brotherhood of Teamsters, which represents 1.3 million film and TV workers. The union raised concerns that the merger could destabilize domestic production, reduce job security, and concentrate too much power in the hands of a few large studios. The Teamsters urged the DOJ to block the merger unless enforceable protections are implemented to preserve production volumes and safeguard employment in the industry.
Claims of regulatory interference intensify
Paramount’s legal team asserts that Netflix has engaged in what they describe as a "scorched-earth campaign" to influence regulators, lawmakers, and labor groups against the merger. Delrahim’s language—including references to "poisoning regulators"—suggests that Netflix’s lobbying efforts are not merely competitive but potentially obstructionist, aiming to sway decision-makers before formal reviews conclude.
This accusation is notable given Delrahim’s own background in antitrust enforcement. His involvement in the letter may signal Paramount’s strategy to frame the merger as pro-competitive and to challenge the legitimacy of third-party objections, particularly those from labor unions with significant political influence.
What happens next in the regulatory process
The DOJ’s Antitrust Division is currently reviewing the merger under Section 7 of the Clayton Act, which governs mergers that may substantially lessen competition. The division typically issues a Second Request for additional information if it finds potential antitrust concerns—a process that can extend the review timeline by months.
Paramount and Warner Bros Discovery have not publicly detailed specific concessions they are willing to offer to address regulatory concerns. However, the Teamsters’ demand for domestic production safeguards and job protections suggests that labor considerations may become a key negotiation point in any potential settlement or consent decree.
Should the DOJ block the merger, it would mark a rare intervention in a major media consolidation and could set a precedent for how antitrust authorities assess future deals in the rapidly evolving streaming and entertainment landscape. Regulators are increasingly scrutinizing not just market share, but labor impact, content diversity, and long-term innovation incentives.
The outcome of this dispute will likely influence how other streaming platforms and media conglomerates approach future mergers, particularly as traditional Hollywood studios seek to defend market positions against tech-driven competitors like Netflix.
AI summary
Paramount’un Warner Bros. Discovery birleşmesine karşı Netflix’in düzenleyicileri ve paydaşları olumsuz etkilemeye çalıştığı iddia edildi. ABD Adalet Bakanlığı’na gönderilen mektupta, şirketin agresif kampanyası eleştiriliyor.
