Paramount Raises Concerns Over Warner Bros. Sale Process

Paramount has reached out in a letter to Warner Bros. Discovery’s CEO, David Zaslav, expressing doubts about the “fairness and appropriateness” of the ongoing sales process. This comes amidst indications that Warner Bros. might be leaning towards a bid from Netflix.

Reports suggest that bankers from Paramount Skydance, Comcast, and Netflix have submitted second-round bids this week for some or all of Warner Bros. Discovery’s assets.

Netflix has proposed a cash offer targeted at acquiring Warner Bros. Studios and HBO Max, while Paramount has made an all-cash proposal to buy the entire company, as previously noted.

In the letter, attorney Quinn Emanuel raised concerns, stating that it seemed Warner Bros. Discovery had abandoned a fair trading process, thus failing its responsibilities to shareholders. A copy of this letter was acquired by various outlets.

The letter further criticized the management for engaging in a process that seemingly favored one bidder, describing it as short-sighted.

Paramount specifically requested that this letter be shared and discussed with the entire Warner Bros. Discovery Board of Directors.

The correspondence highlighted management’s apparent enthusiasm for the Netflix deal.

Earlier reports indicated that Netflix’s CEO, Ted Sarandos, has been close to Zaslav, fueling speculation that there is support for a deal with Netflix.

In response to the concerns raised, Warner Bros. stated that their legal team has shared the letter with the board, affirming that the company is “firmly in compliance” with its fiduciary responsibilities.