Paramount sent a letter to Warner Bros. Discovery CEO David Zaslav questioning the “fairness and adequacy” of the media giant’s sales process – nodding to reports the media giant is leaning toward a bid from Netflix.
Bankers for Paramount Skydance, Comcast and Netflix all reportedly submitted second-round bids to WBD this week to take over some or all of the company’s assets.
Netflix has made a mostly cash offer to purchase the Warner Bros. studio and HBO Max, while Paramount has submitted an all-cash bid for the entire company, The Post previously reported.
“It has become increasingly clear, through media reporting and otherwise, that WBD appears to have abandoned the semblance and reality of a fair transaction process, thereby abdicating its duties to stockholders,” Paramount’s attorneys at Quinn Emanuel wrote to Zaslav, according to a copy of the letter obtained by CNBC.
The letter added that WBD has apparently “embarked on a myopic process with a predetermined outcome that favors a single bidder.”
“We specifically request and expect this letter will be shared and discussed with the full board of directors of WBD.”
The letter, in particular, called out reported “enthusiasm by WBD management for a transaction with Netflix.”
The Post previously reported on mounting speculation that WBD is favoring a deal with Netflix, as insiders noted the streaming giant’s CEO Ted Sarandos is said to be close with WBD’s Zaslav.
In a response to The Post on Thursday, WBD said that lawyers for Warner Bros. told Paramount it has shared the letter with members of the WBD board, adding that the company has “robustly complied” with fiduciary obligations.
WBD could pick a winning bidder as early as this week, though it now appears to be a horse race between Paramount Skydance and Netflix, The Post reported earlier this week.
But even if WBD’s board chooses Netflix, the billionaire Ellison family at Paramount Skydance is planning to plead directly with WBD shareholders – arguing the Netflix tie-up would be halted by regulators, sources said.
Senior White House officials have already met to discuss antitrust concerns about a potential WBD-Netflix merger, which could combine two of the top streaming services: HBO Max and Netflix, The Post reported.
The bids submitted this week are binding, giving the board the chance to quickly approve a deal if terms are met, a source familiar with the matter told Reuters.
Last week, Warner Bros. asked bidders to submit improved offers by Dec. 1, after rejecting a $24-a-share bid from Paramount in October.
WBD initially announced it was exploring options for a sale in October.
It follows an $8.4 billion merger of Skydance Media and Paramount Global in July, which was approved after months of back and forth over antitrust and political concerns.
The FCC finally greenlit the deal after Skydance vowed to scrap DEI at Paramount and appoint a media bias ombudsman at CBS News.
