(Image: Netflix, Warner Bros. Pictures, Paramount Global)
Paramount Global may have outbid Netflix for Warner Bros. Discovery, securing the acquisition rights for an estimated $110 billion, but the studio still faces significant hurdles. Beyond a petition signed by over 5,000 Hollywood professionals opposing the deal, Paramount must also convince regulatory bodies to grant approval. However, according to recent statements from Paramount Global, the company believes it remains under the shadow of Netflix, accusing the streamer of actively attempting to obstruct the acquisition behind the scenes.
Makan Delrahim (pictured below), Paramount Global's Chief Legal Officer, recently alleged in a letter to lawyers for the antitrust division that a "panicked" Netflix, having lost the bidding war, is now employing a "scorched-earth policy" to lobby regulators and other stakeholders against Paramount Global's acquisition plan.
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Delrahim highlighted that Netflix has been covertly citing Disney's acquisition of 20th Century Fox as an example, arguing that such large-scale studio mergers lead to decreased content output and job losses. However, Delrahim clarified that Paramount Global is committed to actively increasing film and television content production and has no intention of scaling back.
Responding to Paramount Global's accusations, a Netflix spokesperson stated that Paramount Global's claims were "absurd." The spokesperson added that Netflix had abandoned its bid for the acquisition months ago and had since been focused on its own business, not Paramount's. Ultimately, the spokesperson concluded, it was up to regulators to decide whether to approve the deal and determine if it served the best interests of the entire industry and all relevant parties.