Paramount Accuses Netflix of Trying to Sabotage Its Warner Bros. Discovery Deal

Paramount has accused Netflix of attempting to derail its proposed acquisition of Warner Bros. Discovery, escalating the public battle surrounding one of Hollywood's largest media mergers.

In a letter sent to the US Department of Justice, Paramount Chief Legal Officer Makan Delrahim accused Netflix of launching a "scorched-earth campaign" designed to "poison regulators and other stakeholders" against the transaction. Delrahim described the company's response to the merger as a "panic-level" reaction to the competitive threat posed by the combined business.

Netflix has rejected the allegation. In a statement reported by Deadline, the streaming company said Paramount's claims were "absurd", adding that it walked away from the deal months ago and remains focused on its own business rather than Paramount's proposed merger.

Paramount Defends Warner Bros. Deal Against Job-Loss Concerns

Paramount's letter was submitted in response to concerns raised by the International Brotherhood of Teamsters, which has urged the DOJ to block the merger unless the companies make enforceable commitments to protect workers and maintain domestic production.

The union said the deal could threaten film and television jobs by consolidating two major Hollywood studio and combining streaming services including Paramount+ and HBO Max. It pointed to Disney's acquisition of 21st Century Fox as a cautionary example, arguing that previous media mergers have led to layoffs, eliminated production units and cancelled projects.

Paramount has pushed back against that argument. Delrahim said the merger would increase production activity rather than reduce opportunities for workers, arguing that additional films and TV series would create more work across areas such as transportation, casting, locations and catering.

When the deal was announced in Feb, Paramount said it planned to retain both studios and produce at least 30 theatrical films annually, with 15 films released by each studio. The company also said the combined business would invest in content creation and expand its streaming operations to compete more effectively withe stablished platforms.

Paramount Beat Netflix in the Warner Bros. Bidding War

Paramount entered into a definitive agreement to acquire Warner Bros. Discovery on February 27, 2026, after beating a competing offer from Netflix.

Under the agreement, Paramount will pay $31 per share in cash for all outstanding Warner Bros. Discovery shares. The transaction values the company at approximately $81 billion in equity value and $110 billion in enterprise value.

Netflix had previously agreed to acquire Warner Bros. Discovery’s studio and streaming assets for $27.75 per share, while the company’s linear television networks would have been separated into a standalone business. Warner Bros. Discovery later determined that Paramount’s revised proposal was superior, giving Netflix a four-business-day period to improve its offer. Netflix declined to increase its bid, saying the required price was no longer financially attractive.

The Paramount deal would combine a major portfolio of entertainment brands and franchises, including HBO Max, Paramount+, CNN, CBS, DC, Harry Potter, Game of Thrones, Mission: Impossible, Top Gun and Star Trek.

The Paramount-Warner Bros. Merger Still Faces Regulatory Scrutiny

The deal is not yet complete and continues to face scrutiny from regulators and industry groups.

The UK Competition and Markets Authority formally opened the first phase of its review on June 9. The regulator is expected to decide by August 7 whether to approve the transaction or refer it for a more detailed investigation.

In the US, Reuters reported that California, New York and other states are preparing a lawsuit that could seek to block the acquisition. The report said the legal action could be filed within weeks, while the DOJ has also been examining how the merger could affect studio output, streaming competition, content rights and movie theatres.

Paramount has maintained that the acquisition would strengthen competition by creating a larger rival to Netflix and other major streaming companies. Critics, however, remain concerned that merging two major Hollywood studios could reduce consumer choice and lead to job losses across the entertainment industry.

FAQ

Is Paramount buying Warner Bros. Discovery?

Paramount has entered into an agreement to acquire Warner Bros. Discovery for $31 per share in cash. The transaction values Warner Bros. Discovery at approximately $110 billion in enterprise value, but it still requires regulatory approval.

Why is Paramount accusing Netflix of trying to sabotage the Warner Bros. deal?

Paramount claims Netflix has attempted to influence regulators and industry stakeholders against the merger. Netflix has denied the allegation and said it walked away from the Warner Bros. bidding process months ago.

Why are unions opposing the Paramount-Warner Bros. merger?

The Teamsters union says the merger could lead to job losses and further consolidation in Hollywood. It has asked the DOJ to block the transaction unless Paramount and Warner Bros. Discovery agree to enforceable worker protections.

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