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Paramount Urges Congress to Scrutinize Netflix Deal for Warner Bros. Discovery Assets

By  |  January 11, 2026

Paramount has escalated its opposition to Netflix’s planned acquisition of major Warner Bros. Discovery assets by appealing directly to lawmakers, adding a political dimension to an already contentious media battle. According to Deadline, the move came the same day Warner Bros. Discovery’s board formally turned down Paramount’s most recent offer to acquire the company.

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    In a written submission to a House Judiciary Committee antitrust subcommittee, Paramount chief legal officer Makan Delrahim argued that the proposed Netflix transaction should raise immediate red flags for regulators. Per Deadline, Delrahim told lawmakers that the deal should be considered “presumptively unlawful,” asserting that it would strengthen Netflix’s already significant position in subscription streaming.

    The letter was submitted as the subcommittee convened a hearing focused on competition in the streaming marketplace. According to Deadline, the possible sale of Warner Bros. Discovery was a recurring subject during the session, with lawmakers and expert witnesses debating how government agencies should assess consolidation in the rapidly evolving media sector. Paramount did not appear before the panel in person, instead opting to provide its views through written comments, a process the committee has allowed as part of its review.

    One of the most debated issues during the hearing, per Deadline, was how regulators should define the relevant competitive market. Some testimony suggested that Netflix competes not only with other subscription services but also with a broad range of digital platforms, including YouTube and social media. Delrahim strongly criticized that approach, warning that an overly expansive definition would undermine meaningful antitrust enforcement.

    Read more: Warner Bros. Stands by Netflix Deal After Rejecting Paramount’s Sweetened Bid

    “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,” Delrahim wrote in the filing. “This is what some call ‘psychedelic antitrust’ — it has no ground in market or legal reality.”

    Delrahim further maintained that Netflix itself has not consistently treated platforms like YouTube as direct competitors. According to Deadline, he referenced the company’s prior securities disclosures, noting that Netflix historically compared itself to other subscription-based streaming services rather than free, ad-supported platforms.

    The argument carries added weight given Delrahim’s background. As Deadline reported, he previously led the Justice Department’s antitrust division during Donald Trump’s first term, giving him firsthand experience with how federal regulators approach competition issues.

    Netflix declined to comment on the filing, according to Deadline. The Wrap first reported the existence of the letter, which initially drew limited attention amid broader industry speculation about Paramount’s next steps following its failed attempt to acquire Warner Bros. Discovery.

    Last month, Warner Bros. Discovery struck a deal with Netflix that would see Netflix acquire its studio and streaming businesses, while WBD’s cable networks would be separated into a new company, per Deadline. That transaction now faces scrutiny from multiple regulators.

    While Congress does not have the power to directly approve or block the deal, lawmakers oversee the Justice Department, which will play a central role in the antitrust review. According to Deadline, the process is also expected to involve European regulators and state attorneys general, ensuring that the Netflix–WBD transaction will be examined on several fronts before any final decision is made.

    Source: Deadline