Paramount Accuses Netflix of a "Scorched-Earth Campaign" to Kill Its Warner Bros. Discovery Merger

The Paramount–Warner Bros. Discovery merger just got a lot more publicly combative. In a letter dated June 5 and addressed to the DOJ's Antitrust Division, Paramount Chief Legal Officer Makan Delrahim accused Netflix of running a "scorched-earth campaign" to poison regulators against the deal — strong language for a regulatory filing, even by Hollywood standards.

The letter, obtained by Deadline, was written in response to a White Paper the Teamsters submitted to the DOJ back in March, which raised concerns about the merger's potential impact on labor. But Delrahim used the opportunity to go much further, arguing that Netflix — not the Teamsters — is the real force behind the opposition. "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," he wrote.

The backstory here matters. WBD had a prior agreement with Netflix before its board chose the Ellisons' offer instead. Netflix walked away from that deal with a $2.8 billion breakup fee. Delrahim's letter frames Netflix's current behavior as a direct extension of that loss — a company that got outbid and is now working the regulatory process to slow down a rival.

Netflix was quick to push back. In a statement to Deadline, a spokesperson called the claims "absurd," adding: "We walked away from this deal months ago and remain focused on our own business, not theirs. Ultimately, it's up to the regulators to approve this deal and determine if it is in the best interest of the industry and all concerned."

On the labor front, Delrahim rejected the Teamsters' concerns directly, calling the deal "a win for the Teamsters and other labor unions." He also dismissed comparisons to the 2019 Disney–Fox merger — a comparison he attributed to Netflix's broader "proxy war" — saying the "sky is falling" narrative "departs significantly from the ground-truth reality of what actually happened."

Paramount's pitch to regulators is straightforward: the combined company would still be a distant third in streaming behind Netflix, Amazon, and Disney, and the merger is necessary for either studio to compete at scale. Delrahim pointed to commitments including at least 30 theatrical releases per year post-acquisition (at least 15 from each studio), a minimum 45-day theatrical window, and a projected increase in overall content spend. The deal is also targeting at least $6 billion in savings.

The regulatory picture is still developing. The EU's initial review deadline is July 7, though that could be extended. The UK opened a Phase I inquiry this morning, with an August 7 deadline unless a deeper review is triggered. The DOJ review remains ongoing, and Paramount has signaled it's willing to agree to remedies to get the deal across the finish line.

What's notable about the June 5 letter is less the substance — merger parties defending their deal to regulators is routine — and more the directness of naming Netflix as an active saboteur. That's a public accusation with a paper trail now sitting in a federal antitrust file. Whether it changes anything for the DOJ is another question entirely.

[Original Source](https://deadline.com/2026/06/paramount-netflix-warner-bros-discovery-merger-doj-1236951265/)