The future of James Gunn’s DCU looks increasingly uncertain as Paramount’s pending merger with Warner Bros. runs into multiple new problems. Gunn and Peter Safran relaunched the DC Universe with Creature Commandos in 2024 and Superman last summer. Their young franchise now belongs to a studio in the middle of a sale valued at roughly $111 billion. Paramount Skydance outbid Netflix for Warner Bros. Discovery in February, but the deal still needs regulatory approval before it can close.
Within the past week, three separate developments threw fresh obstacles in the merger’s path. Paramount accused Netflix of running a “scorched-earth campaign” to turn regulators against the deal. Other reports also indicate that California, New York, and other states are preparing a lawsuit to block it, and the United Kingdom’s competition watchdog opened a formal investigation into the acquisition.
Paramount Accuses Netflix of Poisoning Its Warner Bros. Deal
Makan Delrahim, Paramount’s chief legal officer, sent a letter to attorneys in the Department of Justice’s Antitrust Division on Friday, June 5 (as revealed by Deadline). In it, he claimed Netflix fears competing with a combined Paramount and Warner Bros. so much that the streamer is now working to sabotage the deal behind the scenes. Delrahim argued that Netflix’s “panic-level response” proves how seriously it views the merged company as a threat:
“Netflix’s panic-level response and scorched-earth campaign to try and poison regulators and other stakeholders against the Transaction shows just how seriously Netflix takes Paramount as a scaled competitor.”
The letter responded to a white paper the Teamsters union sent to the Justice Department, urging the agency to block the merger unless Paramount agreed to enforceable safeguards against job cuts. According to Delrahim, Netflix told the union and other stakeholders that Disney’s takeover of Fox damaged content production and labor opportunities, and warned the same thing would happen here. The Paramount lawyer dismissed those claims as part of a “proxy war” against the deal:
“We understand that as part of its broader proxy war against the Transaction, Netflix has tried to persuade the Teamsters and other stakeholders that Disney’s acquisition of Fox had a negative impact on content production and labor opportunities. Frankly, Netflix’s ‘sky is falling’ narrative departs significantly from the ground-truth reality of what actually happened.”
Delrahim insisted the merger will boost production rather than shrink it, repeating CEO David Ellison’s promise that the combined studio will release at least 30 films per year.
State Lawsuits and a UK Probe Add to Paramount’s Troubles
The Netflix accusations only cover one front of the fight. On June 5, sources told Reuters that California, New York, and other states are preparing an antitrust lawsuit to block the acquisition, and the filing could happen in a couple of weeks. California Attorney General Rob Bonta leads the effort and promised an investigation shortly after Paramount won the bidding war.
There’s a chance the lawsuit doesn’t succeed; even so, it could still do damage. It could stall a merger for months if a judge pauses the deal while the case plays out. Such delays could escalate merger costs for Paramount, as they would be paying shareholders a fee until the deal closes.
Then came the news out of Britain. On Tuesday, June 9, Variety reported that the UK’s Competition and Markets Authority opened a formal investigation into the merger. The regulator will decide by August 7 whether to clear the deal or refer it for an in-depth review. All of this piles on top of the Department of Justice, which is still weighing its own decision on the acquisition.
Why the Merger Mess Clouds the DCU’s Future
The DCU faces no immediate danger regardless of all the drama. Supergirl opens in theaters on Friday, June 26, Lanterns debuts on HBO Max in August, and Clayface follows on October 23. Those projects are finished or close to it, and no lawsuit or regulator will stop them from reaching audiences. Ellison also reportedly plans to keep Gunn and Safran in charge of DC Studios after the sale closes, leaving Warner Bros.’ creative teams intact for the foreseeable future.
The real risk involves everything that comes after. Industry reporting earlier this year described Warner Bros. as wary of committing big money to new films while the sale hangs over the studio. Filmmakers are already reportedly struggling to get answers about their projects. A studio in limbo does not greenlight expensive superhero movies. Gunn’s announced slate still includes projects without start dates, including The Brave and the Bold, Teen Titans, and Swamp Thing, and those need a decisive parent company to move forward.
Every new legal headache extends that limbo. A state lawsuit could freeze the merger in court for months. The UK investigation stacks another layer of review on top of the DOJ’s pending call. The longer Paramount fights on multiple fronts, the longer DC Studios’ future hangs in the balance.
Gunn struck a cautious note about the sale, telling Men’s Journal that he hopes it goes well while admitting “you don’t really know until you know.” His next movie, Man of Tomorrow, arrives on July 9, 2027, and teams Superman with Lex Luthor against a greater threat. That film is also safe alongside those releasing this year. Whether the wave of projects behind it stays on track depends on how quickly Paramount can clear the hurdles ahead.
