Paramount Skydance accuses Netflix of “scorched-earth” effort to sway Justice Department over Warner Bros. deal

Paramount Skydance has accused Netflix of waging a “scorched-earth campaign” to influence regulators as the U.S. Justice Department reviews Paramount’s pending acquisition of Warner Bros. Discovery. In remarks relayed in a letter obtained by NBC News, Paramount Skydance chief legal officer Makan Delrahim described Netflix’s response to the merger as a “panic-level” effort that he said illustrates how seriously Netflix views Paramount as a scaled competitor.

According to the letter, Delrahim argued that Netflix tried to “poison regulators and other stakeholders” in connection with the deal. Paramount said the push was directed beyond routine advocacy, portraying it instead as an attempt to derail or complicate the review process by targeting decision-makers involved in assessing the transaction’s likely impact.

Netflix disputed the allegations. A Netflix spokesperson told NBC News the claims from Paramount Skydance were “absurd,” adding that the company “walked away from this deal months ago” and is focused on its own business rather than Paramount’s. The spokesperson said the merger review is ultimately up to regulators and whether the combination is in the best interest of the industry and all concerned.

The Paramount letter was sent to the Justice Department on Friday and comes after a separate warning sent earlier to the agency by the International Brotherhood of Teamsters. In that earlier submission, the Teamsters argued that Paramount’s acquisition of Warner Bros. Discovery could pose risks, citing concerns tied to workers employed across film and television sets.

NBC News reported that Delrahim’s letter was framed as a direct response to the Teamsters’ message. The crux of Paramount’s pushback, as characterized in the reporting, was that Netflix is using regulatory channels and stakeholder pressure to try to block a competitor from closing, rather than making arguments that Paramount said should be considered on their merits in the standard review process.

The Warner Bros. Discovery transaction is large enough to sit at the center of U.S. media consolidation questions, combining major Hollywood production libraries and distribution platforms under one corporate umbrella. Paramount and its partner, Skydance, won the bidding process for Warner Bros. Discovery in late February, and NBC News reported that WBD shareholders approved the deal in late April.

For Netflix, the dispute underscores how platform companies are increasingly drawn into antitrust and labor-related merger fights, even when they are not the named acquirer. For Paramount Skydance, the letter is a announcement that it expects the Justice Department’s review to be contested not only on competition and market structure, but also on how regulators interpret industry and workforce concerns.

Still, key details remain unclear from what is publicly described in the reporting. The NBC News account summarizes the allegations and Netflix’s rebuttal but does not lay out specific actions Netflix took, specific communications to regulators, or any documentary evidence in the letter beyond the quoted characterizations. Regulators, including the Justice Department, also had not immediately provided a response in the reporting, leaving the practical effect of the dispute on the merger timeline uncertain.