Paramount has accused Warner Bros. Discovery (WBD) of conducting an unfair sale process, as Netflix reportedly emerges as the frontrunner to acquire the media giant. In a letter sent to WBD CEO David Zaslav, lawyers for Paramount claimed the bidding process had become “tilted and unfair” after WBD requested second-round bids from suitors interested in buying some or all of its assets.
The letter, published by CNBC, stated that WBD appeared to have “abandoned the semblance and reality of a fair transaction process” and was favouring a single bidder. Paramount, along with Netflix and Comcast, is among the parties vying for WBD. The note was addressed to Zaslav and the WBD board of directors, demanding it be shared with the full board.
According to Reuters, Netflix has proposed purchasing WBD’s studios and streaming unit, suggesting that combining its app with HBO Max could lower costs for consumers through a bundled offering. The report noted that most Netflix users also subscribe to WBD’s streaming service. However, investor anxiety over Netflix’s potential acquisition has caused a slight drop in its stock price, with analysts citing concerns about WBD’s large debt load and the $70 billion price tag.
CNBC reported that Netflix is currently the leading bidder based on how WBD values the offers, while Comcast remains disciplined to avoid angering shareholders. WBD opened the sale process in October after rejecting three bids from Paramount, the last at $23.50 per share. Paramount’s David Ellison, backed by his father Larry Ellison—a close ally of President Donald Trump—had previously expressed confidence that his bid would be the only one approved by the Trump administration, calling it a “Trump card.”
In an October letter to the WBD board, Ellison argued that Paramount was the only viable suitor, claiming other potential acquirers would face “insurmountable hurdles” due to their market positions. Ellison is interested in purchasing all of WBD’s assets, while other bidders focus on streaming and studios. Zaslav has already announced plans to spin off WBD’s cable networks, including CNN and TNT, into a separate company.
