WASHINGTON, Jan 11, 2026, 13:43 EST
Paramount has urged U.S. lawmakers to take a hard look at Netflix’s proposed acquisition of key Warner Bros Discovery assets. In a written filing, the company labeled the deal “presumptively unlawful.” Paramount also dismissed claims that free video platforms can compete with paid streaming as “psychedelic antitrust,” arguing there’s “no ground in market or legal reality” for such comparisons. 1
This shift is significant, ramping up political pressure on a takeover battle already drawing regulatory scrutiny. Warner Bros Discovery’s board has urged shareholders to support its deal with Netflix, dismissing Paramount Skydance’s bid. The board flagged the rival offer’s heavy debt load as a risky bet if the deal falls through. 2
The submission arrived amid the House Judiciary Committee’s antitrust subcommittee gathering testimony and filings ahead of its January 7 hearing on competition in digital streaming. Their record features statements from industry groups and witnesses, all tasked with advising on how regulators ought to define the market when assessing major media mergers. 3
Paramount’s chief legal officer, Makan Delrahim, slammed Netflix’s defense in filings before the panel, calling it a “tortured and absurd definition of the market.” He insisted the deal was “clearly anticompetitive, and not a close call.” Delrahim pointed out that Netflix tried to stretch the market scope by including YouTube and TikTok, yet the company hasn’t treated those platforms as direct competitors in its own past disclosures. 4
The fight tops a bidding battle over Warner’s assets. Warner’s board supports Netflix’s $82.7 billion offer for parts of the company. Paramount Skydance counters with a $108.4 billion hostile tender offer — aiming to buy shares straight from shareholders — for the entire business. Warner’s directors have labeled Paramount’s move a leveraged buyout, meaning it relies heavily on debt, warning it would saddle the merged company with $87 billion in debt. 5
Paramount fired back at Warner’s pitch by targeting the cable-network segment Netflix wants to ditch. It argued the cable spinoff at the heart of Warner’s plan holds little value and cautioned that the cash payout to shareholders under Netflix’s setup might shrink if Warner piles on more debt. Paramount’s tender offer is set to expire on Jan. 21 but could be extended. 6
Investors remain divided. Alex Fitch, partner and portfolio manager at Harris Oakmark, told Reuters that the Netflix deal still sets the standard. Meanwhile, Pentwater Capital’s Matthew Halbower slammed Warner’s board for not engaging with Paramount, saying it shortchanges shareholders. Mario Gabelli, whose firm owns Warner shares, said he was “likely” to back Paramount, pointing to the all-cash offer’s potentially quicker regulatory approval. 7
In the same congressional record, Cinema United, a cinema trade group, urged lawmakers to closely examine any Warner sale. They argued that a Netflix acquisition would centralize production and distribution “in the hands of a single, dominant” streaming giant. The group also flagged potential issues with a Paramount-Warner merger, noting the combined studio might capture up to 40% of the domestic box office in a typical year.
The outcome remains uncertain. Antitrust regulators might challenge the final deal, push for remedies like asset divestitures, or zero in on content licensing and distribution issues. Paramount’s move to Capitol Hill could stiffen resistance to consolidation, even if it doesn’t sway the regulators’ final call.
Paramount is pushing to frame the Netflix-Warner deal as the main competition concern, even as Warner’s board keeps guiding shareholders toward Netflix instead of the debt-heavy option.
