Overview
- In a letter published by CNBC, Paramount Skydance accused Warner Bros. Discovery of a tilted process favoring a single bidder, pointing to alleged management conflicts and citing reports of WBD executives’ preference for Netflix.
- Paramount requested confirmation that an independent special committee is overseeing the review, while WBD’s lawyers acknowledged receipt, said the letter was shared with directors, and asserted the board has fulfilled its fiduciary duties.
- Multiple outlets reported WBD has asked Paramount, Netflix and Comcast for a third round of bids due Thursday, extending the competitive auction beyond the second-round offers submitted Dec. 1.
- Media reports say Netflix has emerged as the frontrunner with a mostly cash bid targeting WBD’s studios and streaming assets, as Comcast also pursues those businesses, while Paramount is pressing an all-cash proposal to acquire the entire company.
- Paramount has lifted its proposed breakup fee to about $5 billion and has signaled it could appeal directly to shareholders, with all scenarios expected to face significant antitrust and international regulatory scrutiny.