The battle for control of media giant Warner Bros. Discovery (WBD) has taken a dramatic and acrimonious turn, with Paramount Global publicly accusing the sale process of being "tilted and unfair" as streaming titan Netflix jumps into the lead.
Legal Broadside Over a "Predetermined" Outcome
In a blistering letter sent this week to WBD CEO David Zaslav and the company's board, lawyers for Paramount claimed the media conglomerate had "abdicated its duties to stockholders." The legal missive, published by CNBC, asserts that WBD has embarked on a "myopic process with a predetermined outcome that favors a single bidder" – widely understood to be Netflix.
The complaint follows a Reuters report that detailed Netflix's proposed purchase of WBD's studios and streaming unit. Netflix reportedly argued that bundling its service with HBO Max would lower costs for consumers, a key point in its pitch given the vast overlap in subscriber bases.
Netflix's $70bn Lead and Investor Jitters
As of Thursday, 4 December 2025, Netflix is considered the leading bidder based on how WBD is valuing the offers, with the potential price tag reportedly reaching a staggering $70 billion. However, this frontrunner status has sparked anxiety among Netflix investors, causing a slight dip in its share price on Wednesday.
Analysts pointed to concerns over the enormous debt load such a deal would require and questions over whether it would add sufficient value. "If you're lowering costs for customers and not getting many more of them, it's not clear how such an acquisition would add much value," noted investment site Sherwood News.
The other major suitor, Comcast – owner of NBCUniversal – is said to be taking a more disciplined approach to avoid angering shareholders with excessive debt.
Paramount's Fading "Trump Card"
The aggressive legal move marks a stark shift in tone for Paramount and its chief, David Ellison. In recent months, Ellison had exuded confidence, believing his bid held a unique "Trump card." With the backing of his father, Oracle billionaire Larry Ellison – a close ally of President Donald Trump – the Paramount team felt its offer would be the only one guaranteed approval from the current US administration.
This confidence was underscored in an October letter to the WBD board, where Ellison stated Paramount was "the best partner" and the only viable merger suitor, suggesting other bidders would face "insurmountable" regulatory hurdles. Paramount had previously seen three offers rebuffed, the last at $23.50 a share, before WBD opened the process to other bidders in October.
Now, Paramount's lawyers argue the process has been compromised, citing media reports of WBD management's enthusiasm for a Netflix deal, described as a "slam dunk," while Paramount's bid was viewed negatively.
Political and Regulatory Ramifications
The prospect of a Netflix victory is already drawing political scrutiny. Senator Mike Lee, a Republican from Utah, tweeted that the deal "should send alarm to antitrust enforcers around the world," raising "serious competition questions."
Warner Bros. Discovery responded to Paramount's letter on Thursday, acknowledging receipt and assuring that its board attends to its fiduciary duties "with the utmost care." The company is expected to issue a fuller response shortly.
Meanwhile, David Zaslav has previously announced plans to spin off WBD's cable networks, including CNN, TNT, and TBS, into a separate entity, a factor complicating the bids from parties primarily interested in the streaming and studio assets.
