A brewing battle among Hollywood’s biggest players spilled into public view this week, as Paramount Skydance leveled sharp accusations at Netflix, claiming the streaming giant has been working behind the scenes to sabotage its pending $110 billion acquisition of Warner Bros. Discovery.
In a letter sent to the Justice Department on Friday and first reported by Politico, Paramount Skydance accused Netflix of spearheading a campaign to poison regulators and other stakeholders against its purchase of rival Hollywood studio Warner Bros. Discovery. The letter, written by Paramount Skydance’s chief legal officer Makan Delrahim, characterized Netflix’s opposition as a panic-level reaction that only underscores how seriously the streaming leader views Paramount as an emerging competitor. This is not new news, as Puck News reported that Netflix was attempting to block the merger back in April 2026.
Netflix pushed back swiftly and dismissively. A company spokesperson said the allegations were absurd, noting that Netflix walked away from its own bid for Warner Bros. Discovery months ago and has no ongoing stake in the matter. The spokesperson emphasized that regulatory approval rests with the government, not with rival studios.
The backdrop to this dispute is a high-stakes bidding war that concluded earlier this year. Paramount Skydance triumphed over Netflix in late February, and Warner Bros. Discovery shareholders subsequently approved the tie-up in late April. The deal now sits with Trump administration regulators, who are weighing whether to allow what would be a landmark consolidation of two storied Hollywood studios and their respective streaming services.
Paramount’s letter was written in direct response to concerns raised by the International Brotherhood of Teamsters, the labor union representing drivers and other behind-the-scenes workers on film and television productions. The Teamsters argued that Paramount’s acquisition of WBD poses a direct threat to workers and called on the Justice Department to block the deal unless substantial and enforceable safeguards are put in place to increase domestic production and protect jobs.
Delrahim rejected that argument outright, contending that labor would actually benefit from the increased content investment and competitive energy that the combined company would generate. He also took direct aim at what Paramount described as Netflix’s broader strategy of using third parties, including the Teamsters, as stand-ins in a proxy war against the merger.
Central to that alleged strategy, according to Paramount, is Netflix’s effort to frame the 2019 Disney acquisition of 21st Century Fox’s entertainment assets as a cautionary tale. The Walt Disney Co. took over Fox’s entertainment assets in a $71.3 billion deal that closed in 2019. Delrahim argued that framing is misleading, asserting that Disney unequivocally increased its content spending after absorbing Fox and that Netflix’s narrative departs significantly from what actually happened in the industry.
The Teamsters are not the only voice of opposition. More than 1,000 entertainment professionals — including A-list actors, directors, and producers — signed an open letter in April arguing that the transaction would further consolidate an already concentrated media landscape, reducing competition at a moment when the industry can least afford it.
Regulatory scrutiny is intensifying on multiple fronts. California Attorney General Rob Bonta’s office is investigating the deal, and the United Kingdom’s antitrust authority formally announced a probe into the merger. The Justice Department had not responded to requests for comment at the time of publication.
Overseeing Paramount’s legal push is a figure with deep ties to antitrust enforcement. Delrahim became Paramount Skydance’s chief legal officer last fall, having previously served as the U.S. assistant attorney general for the Antitrust Division during President Donald Trump’s first term. His background gives him an unusually detailed understanding of how the very regulators now reviewing this deal operate.
Meanwhile, Paramount Skydance CEO David Ellison has tried to keep the focus on the merger’s promise rather than its controversies. He has publicly committed to honoring the legacy of both companies while building a next-generation media and entertainment firm, and has pledged to release at least 30 feature films per year in theaters — a signal of confidence in the theatrical moviegoing experience at a time when the industry continues to grapple with shifting audience habits and the dominance of streaming.
With regulatory review still ongoing and opposition mounting from labor, creative talent, and now a rival streaming company, the path to completing one of Hollywood’s most consequential mergers remains uncertain.
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