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Paramount Lawyer Accuses Netflix of Sabotaging WBD Merger Talks

Ars Technica •
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A Paramount lawyer alleges that Netflix is attempting to 'poison regulators' against the company's proposed merger with Warner Bros. Discovery. The accusation comes as Paramount seeks regulatory approval for the deal that would reshape Hollywood's streaming landscape. Netflix reportedly withdrew from acquiring Paramount in February.

Paramount's January SEC filing reveals the merged entity would carry $79 billion in debt while reducing content spending by less than 10 percent. CEO David Ellison has committed to releasing at least 30 feature films annually, each spending a minimum 45 days in theaters. However, the company previously acknowledged job losses exceeding over $6 billion in cost savings through duplicative operations elimination.

Netflix counters that Paramount's merger narrative misrepresents reality, pointing to Disney's 2019 acquisition of 21st Century Fox as evidence. The International Brotherhood of Teamsters cited that deal as precedent, noting Fox studios experienced eliminated production units, significant job losses, and canceled projects.

The dispute reflects deepening industry tensions over consolidation's impact on employment and content creation. Regulatory scrutiny intensifies as both companies present competing visions of what the merger means for Hollywood workers and streaming competition.