Paramount Skydance says Warner Bros. Discovery’s sales process is biased toward Netflix

Paramount Skydance accuses Warner Bros. Discovery of favoring Netflix in its sales process, citing conflicts and bias

Paramount Skydance has formally accused Warner Bros. Discovery (WBD) of conducting a biased and conflicted sales process that favors Netflix’s bid for the company’s streaming and studio assets.

In a letter sent to WBD CEO David Zaslav, Paramount’s legal team expressed “grave concerns” that the process has been influenced by management conflicts and shaped around a predetermined outcome.

According to the letter, Paramount believes the WBD board has “abandoned the semblance of a fair transaction process,” citing alleged enthusiasm among WBD executives for a deal with Netflix. Reports referenced by Paramount claim WBD leadership described a potential Netflix deal as a “slam dunk,” while speaking less favorably about Paramount Skydance’s all-cash offer to acquire the entire company.

WBD is currently reviewing second-round bids submitted by Netflix, Comcast, and Paramount Skydance. While Netflix and Comcast are pursuing WBD’s streaming and studio divisions, Paramount Skydance is seeking a full acquisition backed by Middle Eastern sovereign wealth funds.

In its response, WBD’s legal counsel rejected the allegations, stating that the company’s board “fully and robustly complied” with its fiduciary obligations and continues to conduct a fair review.

Paramount also raised concerns about an alleged meeting between WBD executive Gerhard Zeiler and European Commission officials, which reportedly discussed regulatory resistance to a potential merger involving Paramount. The company claims such discussions suggest internal resistance to its proposal.

Additionally, Paramount questioned recent changes to executive employment agreements at WBD, arguing that updated compensation incentives could benefit certain executives depending on which transaction moves forward.

Paramount Skydance has requested confirmation that WBD is using an independent special committee to oversee the process and ensure fairness. The studio maintains that its offer provides the most value to shareholders and insists the sales review should remain unbiased.