Paramount Criticizes WBD Sale Process as “Unfair” in Letter to CEO Zaslav
Paramount has voiced serious concerns regarding the sale process of Warner Bros. Discovery (WBD), labeling it as “unfair.” The accusations suggest that WBD is favoring specific bidders, particularly Netflix, in its dealings. Paramount’s allegations emerged in a letter directed to WBD’s CEO, David Zaslav, where the company criticized the lack of transparency and fairness in the process.
Unfair Sale Process Allegations
In the letter, Paramount stated, “WBD appears to have abandoned the semblance and reality of a fair transaction process.” The studio urged that this conduct may neglect the interests of stockholders. Paramount requested that their concerns be formally presented to the entire WBD board of directors.
Responses from WBD
WBD attorneys responded, asserting that they have maintained their fiduciary duties and assured the board’s compliance with all relevant obligations. They confirmed that they shared Paramount’s letter with the full board.
- Paramount, Netflix, and Comcast submitted bids for portions of WBD.
- The sale process began in October, with second-round bids collected recently.
- WBD’s board announced its openness to new bids after receiving three consecutive offers from Paramount Skydance.
Conflict of Interest Concerns
Paramount also expressed concerns about possible conflicts of interest involving WBD management. The company refrained from naming individuals but highlighted past offers that included potential roles for Zaslav in a merged entity. They accused management of allowing personal interests to influence the sale process, which might compromise the integrity of the negotiations.
Request for Independent Review
The letter urged WBD to establish an “independent special committee” to evaluate the sale opportunities impartially. Paramount criticized the ongoing structuring whereby only certain assets of WBD were prioritized, suggesting this could compromise shareholder value.
Future of WBD
WBD is currently pursuing a split, aiming to separate its linear networks from its streaming and studio divisions by mid-2026, pending any sale agreements. Paramount aims to acquire the entirety of WBD, while Netflix and Comcast have shown interest in particular studios and streaming platforms.
Potential Regulatory Challenges
As discussions continue, there are looming concerns regarding possible antitrust issues, especially with a potential Netflix-WBD merger. Representative Darrell Issa (R-CA) previously warned regulators about the implications of such a combination.
Additionally, a report from the German newspaper *Handelsblatt* indicated concerns raised during a meeting between WBD’s international chief and an EU Commission Vice President. These concerns revolved around media concentration related to the proposed acquisition by Paramount. This dialogue could hint at resistance to Paramount’s bid, complicating their offer.
With ongoing speculations and complexities in the bidding process, Paramount maintains confidence that its offer represents the best opportunity for WBD stockholders, promising maximum value amidst the evolving landscape of the media industry.
