Observed Signal · Jun 10, 2026 · M&A · Source: Cord Cutters News · Impact: 5/5 · Sentiment: Negative
Paramount Accuses Netflix of Blocking $110B WBD Merger
Paramount Skydance has accused Netflix of leading a behind-the-scenes campaign to undermine its pending $110 billion acquisition of Warner Bros. Discovery, sending a letter to the U.S. Justice Department that frames Netflix’s actions as aimed at poisoning regulators and third parties such as the Teamsters. The letter was written by Paramount Skydance chief legal officer Makan Delrahim. Netflix denied the allegations, saying it has no ongoing stake after abandoning its own bid. Paramount beat Netflix in the bidding earlier this year and WBD shareholders approved the transaction; the deal is now under review by U.S. regulators, with parallel probes from the California attorney general’s office and the U.K. antitrust authority. More than 1,000 entertainment professionals and the Teamsters have expressed opposition, while Paramount executives including CEO David Ellison have defended the merger and committed to increased content output.
A proposed $110 billion consolidation of major studios and streaming services could reshape content ownership, CTV/streaming market dynamics and advertising inventory; regulatory outcomes will affect the broader media and ad ecosystem.
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Key Takeaways & Evidence Grounding
- Paramount Skydance alleges Netflix is campaigning to block its $110 billion acquisition of Warner Bros. Discovery.
- Paramount Skydance sent a letter to the U.S. Department of Justice authored by chief legal officer Makan Delrahim.
- Netflix denied the allegations, saying it abandoned its own bid for Warner Bros. Discovery months earlier and has no ongoing stake.
- Warner Bros. Discovery shareholders approved the merger; the transaction is under review by U.S. regulators, California AG Rob Bonta’s office, and the U.K. antitrust authority.
- Over 1,000 entertainment professionals and the International Brotherhood of Teamsters have voiced opposition to the merger.
Connected Companies & Entities
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Recent verified developments and strategic activity across this market segment.
Paramount Wins Warner Bros. Discovery Bidding War
Paramount (with Skydance) secured the right to acquire Warner Bros. Discovery after the WBD board publicly designated Paramount Skydance’s revised proposal a "Company Superior Proposal." Netflix, which held a prior matching right as WBD’s existing partner, declined to match the revised offer within two hours, calling it "no longer financially attractive." Paramount’s revised bid was structured to remove key risks for the WBD board: an all-cash $31.00 per-share offer for 100% of the company, agreement to pay a $2.8 billion termination fee owed to Netflix, a $7 billion regulatory termination fee payable by Paramount if regulators block the deal, and a $0.25-per-share quarterly ticking fee after September 30, 2026. The article notes Paramount pursued hostile tactics (lawsuits and proxy fights) and warns the proposed merger will face intense antitrust and political scrutiny while combining major studio, streaming, and news assets.
WBD Board Rejects Paramount Bid, Backs Netflix Deal
Warner Bros. Discovery’s board unanimously recommended shareholders reject Paramount Skydance’s hostile tender offer, calling the bid’s financing inadequate and accusing Paramount of misleading shareholders about a purported Ellison family backstop. The board expressed distrust of an “unknown and opaque revocable trust” cited by Paramount. Paramount’s proposal was described as an aggressive, all-cash offer of more than $108 billion, while Netflix’s competing transaction is roughly $83 billion and would acquire WBD’s studio and streaming assets while spinning off its linear networks into a separate entity. Paramount also lost the financial backing of Affinity Partners this week. Netflix co-CEO Ted Sarandos said the board reinforced that Netflix’s merger agreement is superior. The ultimate decision now rests with WBD shareholders.
Paramount Files Lawsuit, Launches Proxy Fight Against WBD
Paramount Skydance has escalated a hostile takeover bid for Warner Bros. Discovery (WBD) by filing a lawsuit in Delaware and launching a proxy fight aimed at blocking WBD’s competing deal with Netflix. Paramount says its $108 billion all-cash offer (roughly $30 per share) is financially superior and has asked a court to force WBD to provide fuller financial disclosures about the roughly $83 billion agreement with Netflix. Paramount also plans to nominate its own slate of directors at WBD’s 2026 annual meeting to install a board that will engage with its takeover proposal. CEO David Ellison led the shareholder letter and criticized WBD’s board for not responding to Paramount’s December offer.
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