Paramount Skydance has sent a letter to the Department of Justice alleging that Netflix has launched a behind-the-scenes, “scorched-earth” campaign to derail the Paramount-Warner Bros. Discovery merger deal that is still awaiting federal approval.
In the June 5 letter, Makan Delrahim, Paramount’s chief legal officer, says that Netflix is trying to “poison regulators” against Paramount’s merger deal with WBD, Politico reported.
“Netflix’s panic-level response and scorched-earth campaign to try and poison regulators and other stakeholders against the transaction shows just how seriously Netflix takes Paramount as a scaled competitor,” the letter reads in part.
The streaming giant was initially Paramount’s rival for the purchase of Warner Bros, but Netflix dropped out when Paramount offered a higher bid.
Paramount is already dealing with demands by the International Brotherhood of Teamsters that the merger be blocked because the union fears the consolidation of the two huge studios will put their members out of work. For its part, Paramount disputes the claim.
“Paramount acquiring WBD will not reduce work opportunities for the Teamsters or other organized labor,” Delrahim said in the letter. He added that the merger will expand opportunities for union workers.
“Paramount’s content strategy aligns directly with the Teamsters’ interests. More films and series in production means more call sheets, more location days, more transportation, casting, and catering work,” he continued.
“The Transaction’s positive impacts on organized labor flow naturally from the business logic that drives the underlying deal. Paramount wants to combine with WBD to create a stronger, more efficient competitor that will operate at scale and take on Netflix and the other streaming giants,” he exclaimed.
The merger faces long odds in other areas, too. A number of politicians in Washington have come out to oppose the merger, and California’s left-wing Attorney General Rob Bonita is also highly skeptical of the deal.
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