⚖️ Paramount Accuses Netflix of Trying to Sabotage WBD Merger

Makan Delrahim, Chief Legal Officer for Paramount, accused the competitor of waging a “scorched-earth campaign” and attempting to turn regulators and key stakeholders against the upcoming merger between Paramount and Warner Bros. Discovery (WBD). According to Delrahim, Netflix’s “panic-driven reaction” only proves that the streamer is genuinely terrified of a new $110 billion market competitor emerging.

Paramount’s letter came as a rebuttal to a March report by the International Brotherhood of Teamsters—the union representing transportation and entertainment industry workers—which urged the DOJ to block the “WarnerMount” deal, labeling it a direct threat to American jobs. In its statement, Paramount’s leadership countered that unions would actually benefit directly from the merger due to increased investment in content production, allowing the newly combined entity to compete on equal footing with dominant streaming giants. Furthermore, Delrahim noted that “WarnerMount’s” aggressive strategy would push other market players—ranging from Disney and Universal to Apple and A24—to scale up their own theatrical and film production.

Nevertheless, the tactics attributed to Netflix are not the only hurdle facing the mega-merger. A coalition of state attorneys general, led by California Attorney General Rob Bonta, is preparing a major antitrust lawsuit to block the deal as early as this month. According to Bonta, “red flags are everywhere” when evaluating a transaction of this magnitude, and the states intend to act swiftly to protect market competition.