Paramount Calls Netflix-WBD Merger “Presumptively Unlawful” in Lawmaker Filing

Paramount is pushing back against Netflix’s planned acquisition of Warner Bros. Discovery, calling the deal “presumptively unlawful.” The company took its concerns to Capitol Hill this week as lawmakers discussed the state of the streaming market.

In a letter to a House Judiciary antitrust subcommittee, Paramount’s chief legal officer, Makan Delrahim, argued that combining Netflix and WBD would give Netflix too much control over streaming video on demand. “It would further cement its dominance in streaming video on demand,” Delrahim wrote.

He added that the broader market arguments, which include platforms like YouTube and TikTok as competitors, were unrealistic. “It asserts, for example, that free, user-generated videos on YouTube and TikTok should be considered an adequate substitute for premium produced content available on Netflix or HBO Max. This is what some call ‘psychedelic antitrust’ — it has no ground in market or legal reality,” he said.

Delrahim also noted that Netflix has previously dismissed platforms like YouTube as serious competition in its own filings. The letter comes as Paramount explores a potential hostile bid for WBD after the studio rejected its latest offer.

Last month, Netflix reached a deal to acquire WBD’s studio and streaming assets, while its cable channels are being spun off into a separate company. The merger will still face regulatory review from the Justice Department, European regulators, and state attorneys general. While Congress oversees the Justice Department, lawmakers do not have direct power to approve or block the deal.

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