Netflix vs. Paramount. The dispute over the takeover of the owner of TVN is gaining momentum
According to a letter sent to the US Department of Justice, Paramount Skydance's legal director Makan Delrahim accused Netflix of conducting a “scorched earth campaign” aimed at blocking the transaction.
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According to him, the competitor's reaction was a “panic-level reaction”, which – he argues – shows how seriously Netflix takes Paramount as a rival in the market.
Netflix denies the allegations
The streaming platform has strongly denied the accusations. In response to media questions, a Netflix spokesperson said: “These claims by Paramount Skydance are absurd.
The company representative also emphasized that Netflix is no longer interested in acquiring Warner Bros. Discovery. — We abandoned this transaction several months ago and continue to focus on our business, not theirs – he pointed out.
He also added that the final decision rests with the regulators. “Ultimately, it is up to regulators to approve this transaction and determine whether it is in the best interests of the industry and all interested parties.”
Netflix competed with Paramount Skydance to acquire Warner Bros. Discovery, but in February the winner of the trial was the company led by David Ellison. Shareholders of Warner Bros. Discovery approved the deal in late April, but it still requires approval from U.S. regulators.
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Trade unions are warning about the threat to jobs
One of the elements of the dispute is the position of the International Brotherhood of Teamsters trade union, representing, among others, drivers and film set workers.
In March, the organization asked the Justice Department to block the takeover, arguing that the deal “poses a direct threat” to industry workers. Trade unionists demanded “substantial and enforceable protections” to protect jobs and support manufacturing in the United States.
Delrahim rejected these arguments, arguing that the combined company would increase investment in content production, which would translate into benefits for workers in the entertainment sector.
Hollywood divided over merger
It is not only trade unions that express concerns about the planned transaction. In recent months, over 1,000 actors, producers and directors have come out against the merger. In an open letter published in April, industry representatives warned that the merger could further reduce competition in an already highly concentrated media market.
Other institutions are also analyzing the transaction in parallel. The investigation is being conducted by California Attorney General Rob Bonta's office, and the British antitrust authority also opened a formal investigation on Tuesday.
A key decision before regulators
If the acquisition is approved, it will bring two historic Hollywood studios and their streaming platforms under one corporate roof. This would represent one of the largest consolidations in the history of the modern entertainment industry.
Paramount Skydance CEO David Ellison assures that the purpose of the transaction is to develop both brands. As he declares, the company intends to “celebrate the legacies of two iconic companies while realizing our vision of creating a next-generation media and entertainment enterprise.”. He also pledged to maintain a strong cinema presence and produce at least 30 feature films a year.
The final decision on the acquisition now rests with regulators, who will assess whether the merger will be beneficial to the market, competition and consumers.
