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Paramount Accuses Netflix of 'Scorched-Earth' Tactics

Summary

  • Paramount alleges Netflix employed 'scorched-earth' tactics against its proposed merger.
  • The company claims Netflix's response shows it views Paramount as a significant competitor.
  • Paramount argues its merger will benefit organized labor and create more content.
Paramount Accuses Netflix of 'Scorched-Earth' Tactics

Paramount has sent a strong letter to the Department of Justice, accusing Netflix of orchestrating a "scorched-earth campaign" against its planned merger. Paramount's chief legal officer stated that Netflix's "panic-level response" demonstrates the streamer's serious view of David Ellison's company as a formidable competitor. This move follows a union's report to the DOJ that raised concerns about the deal potentially threatening film and television workers.

Paramount defended the transaction, asserting that it will create more work opportunities in Hollywood and directly benefit organized labor through increased content investment. The company believes the merger will result in a stronger, more efficient competitor capable of challenging Netflix and other major streaming services. Paramount anticipates this strategic move will spur further production opportunities across the industry.

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