Opinion: Warner Bros.’ Pivot to Paramount Is a Win for Tennesseans

After months of courting a merger with Netflix, Warner Brothers Discovery changed course and accepted a competing offer from Paramount Skydance. That decision wasn’t just a business pivot, it was a clear demonstration that antitrust policy is working as intended.

Paramount’s completed offer will result in the combination of two smaller players, which, together, will be better positioned to compete with Netflix and the other industry leaders, both in streaming content and theatrical releases. 

Unlike Netflix, whose chief executive called movie theaters “outmoded,” Paramount’s offer presents a stark contrast. Paramount pledged to underwrite at least 30 theatrical releases per year, a commitment that will help drive continued investment across the entertainment ecosystem. 

Here in Tennessee, theaters are cornerstones of many local communities, driving business and economic activity into nearby restaurants and retail shops. Every dollar spent at a movie theater generates additional revenue for surrounding businesses. And, given Nashville’s ever-growing reputation not just as Music City, USA, but a creative town driven by music, along with other forms of entertainment, including TV shows and movies, we stand to benefit more than most cities in America. 

Likewise, from a studio and production standpoint, a Paramount-Warner Brothers merger will strengthen competition, not diminish it. Combined, the two companies will be similar in size to Disney and Universal. Having three equally sized competitors will lead to enhanced content and better products for consumers. 

To this point, Tennessee Attorney General Jonathan Skrmetti joined ten other attorneys general from around the country to call on the U.S. Department of Justice to conduct a thorough antitrust review of the proposed merger between Netflix and Warner Bros. In his own press release, General Skrmetti warned about the potential impact to theaters and the movie industry. 

Particularly important to Tennesseans, Attorney General Skrmetti emphasized the potential harm to creative professionals. “This merger threatens to devastate movie and television production and abandon America’s enduring legacy as the dominant force in global cinema,” said General Skrmetti. “The market power of a combined Netflix/Warner Brothers will lead to an inundation of cheap slop and the death of the movie theater industry. We are exploring options to protect Tennessee consumers and creators.”

That effort was not about opposing growth, it was about preserving fair competition. The outcome here validates that approach. Antitrust enforcement did not block a deal, it guided the market toward a better one, in large part due to the leadership of Tennessee Attorney General Skrmetti. 

The Netflix merger was doomed from the start because of serious antitrust concerns. It would have involved the largest player acquiring a major competitor and Netflix’s executives apparently saw the writing on the wall. The company’s purchase was rightly scrutinized by lawmakers, and it is likely the sale would ultimately have been blocked by regulators.

By contrast, the Paramount merger does not share those same antitrust concerns. 

First, Paramount prevailed because its offer was superior—a reality that Netflix’s executives even acknowledged when they bowed out. Not only does Paramount’s offer provide greater value to shareholders, it also has a clearer path to regulatory approval as it will still be smaller than Netflix and will actually be better able to compete with Netflix’s dominant platform. 

The Paramount-Warner Brothers agreement avoids those pitfalls because it will increase competition, drive investment and production, support downstream businesses, and above all, benefit everyday families both here in Tennessee and across the country. Those same dynamics likely contributed to the Department of Justice granting a certification of compliance for Paramount’s offer. 

The Paramount-Warner Bros. merger will still undergo regulatory review, as it should. But unlike the Netflix proposal, this transaction aligns with core antitrust principles: enhancing competition, supporting innovation, and delivering tangible benefits to consumers, creators, and communities alike.

As this narrative continues to unfold, I urge federal and state leaders to deal in truth. If they do, they will find that the Warner Bros.-Paramount merger will benefit the entertainment industry by making it more competitive and benefit consumers through increased content and a commitment to theatrical releases. 

Brandon Smith is a partner at Holtzman Vogel. Smith previously served as chief of staff and assistant solicitor general in the Tennessee Attorney General’s Office.