Paramount questions ‘equity and adequacy’ of WBD sale course of after reviews it favors Netflix

Paramount despatched a letter to Warner Bros. Discovery CEO David Zaslav questioning the “fairness and adequacy” of the media large’s sales course of – nodding to reviews the media large is leaning towards 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 property.

Netflix has made a principally money offer to buy the Warner Bros. studio and HBO Max, while Paramount has submitted an all-cash bid for the complete company, The Post previously reported.

Paramount despatched a letter to Warner Bros. Discovery CEO David Zaslav questioning the “fairness and adequacy” of the media large’s sales course of. REUTERS

“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.”

Bankers for Paramount Skydance, Comcast and Netflix all reportedly submitted second-round bids to WBD this week. SOPA Images/LightRocket through Getty Images

The letter, specifically, called out reported “enthusiasm by WBD management for a transaction with Netflix.”

The Post beforehand reported on mounting hypothesis that WBD is favoring a deal with Netflix, as insiders famous the streaming large’s CEO Ted Sarandos is said to be close with WBD’s Zaslav.

In a response to The Post on Thursday, WBD said that attorneys for Warner Bros. told Paramount it has shared the letter with members of the WBD board, including that the company has “robustly complied” with fiduciary obligations.

Paramount has submitted an all-cash bid for the complete company, The Post beforehand reported. Getty Images

WBD may decide a successful bidder as early as this week, though it now seems 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 household at Paramount Skydance is planning to plead directly with WBD shareholders – arguing the Netflix tie-up can be halted by regulators, sources said.

Senior White House officers have already met to discuss antitrust concerns about a potential WBD-Netflix merger, which may mix two of the top streaming providers: HBO Max and Netflix, The Post reported.

The bids submitted this week are binding, giving the board the likelihood to rapidly approve a deal if phrases are met, a source conversant in the matter told Reuters.

Last week, Warner Bros. requested bidders to submit improved affords by Dec. 1, after rejecting a $24-a-share bid from Paramount in October.

WBD initially announced it was exploring choices for a sale in October.

It follows an $8.4 billion merger of Skydance Media and Paramount Global in July, which was accepted after months of back and forth over antitrust and political issues.

The FCC lastly greenlit the deal after Skydance vowed to scrap DEI at Paramount and appoint a media bias ombudsman at CBS News.

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