Paramount accuses Netflix of sabotaging $111 bn Warner Bros. Discovery merger

Paramount Skydance filed letters with the U.S. Justice Department accusing Netflix of launching a “scorched‑earth campaign” to poison regulators and block Paramount’s proposed $111 billion acquisition of Warner Bros. Discovery. The filing, signed by Paramount’s chief legal officer Makan Delrahim, claims Netflix reacted with a “panic‑level response” after losing its own bid for Warner and that the streaming rival is trying to undermine the deal.

Netflix responded that the allegations are “absurd,” noting it stepped away from its bid months ago and is focused on its own business. The proposed merger would combine Paramount’s library and Paramount+ platform with Warner Bros.’ HBO Max and other assets, creating a streaming contender that could reach roughly 200 million subscribers and reshape competition with Netflix’s 325 million‑plus subscriber base.

Regulators in the United States, the United Kingdom and the European Union are reviewing the transaction, while California Attorney General Rob Bonta and labor unions have voiced concerns about job impacts. Paramount argues the deal will boost production, creating more work for film‑ and TV‑related trades and generating $6 billion in synergies from technology, back‑office functions and real estate.

The DOJ’s timeline for a decision remains unclear, and the dispute has turned into a public letter war that underscores the high stakes of the merger for the streaming industry.