Paramount Skydance
Paramount, in a letter to the U.S. Department of Justice, accused Netflix of initiating a "scorched-earth campaign" against the acquisition. The letter, dated June 5, was a response to a March report filed by the International Brotherhood of Teamsters with the Justice Department's Antitrust Division, reported POLITICO on Monday.
The Teamsters union, representing 15,000 Motion Picture Teamsters, warned that Paramount's acquisition of its rival could threaten film and television jobs across the U.S. The union has called on the Justice Department to block the deal unless strong, enforceable measures are implemented to boost domestic production and safeguard workers' jobs.
In March, the Teamsters argued that previous Hollywood mergers have hurt workers, pointing to Walt Disney Co.'s
Makan Delrahim, the Paramount legal executive, pushed back against the same in the letter, arguing that Disney has increased overall content spending and that any decline in output was largely due to the COVID-19 pandemic. He also accused Netflix of encouraging the Teamsters and other groups to blame the merger for reduced production and job opportunities.
Delrahim argued that its proposed acquisition of Warner Bros. Discovery would create more jobs for Teamsters and other unionized Hollywood workers, saying the $111 billion deal would boost competition and increase content investment.
Paramount and Netflix did not immediately respond to Benzinga's requests for comment.
Opposition Mounts Against Merger
This development comes in the wake of last month's report suggesting that the Department of Justice (DOJ) might be leaning towards approving the merger. DOJ staff attorneys, who had previously disagreed with President Donald Trump-appointed DOJ leaders over merger approvals, appeared to be persuaded by Paramount's argument that the merger would not negatively affect other studios and creative talent.
According to a Bloomberg report on Monday, in a private communication with California Attorney General Rob Bonta, Paramount has offered a list of concessions and indicated its willingness to address state concerns as part of the discussions.
In February, Netflix withdrew from the bidding for Warner Bros. after the board deemed Paramount Skydance's offer superior. Co-CEOs Ted Sarandos and Greg Peters said matching the higher bid was no longer financially attractive, emphasizing that the acquisition was desirable at the right price but not essential to Netflix's future.
However, the deal has also faced opposition from Sen. Elizabeth Warren (D-Mass.), who expressed concerns about foreign entities gaining access to personal data and influencing U.S. media. Warren called for the merger to be blocked, citing concerns over national security and privacy.
