Paramount blasts Warner Bros. Discovery as auction nears contentious end

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With the auction for Warner Bros. Discovery wrapping up soon, Paramount is claiming the bidding process wasn’t fair, suggesting Netflix had an unfair advantage.

Paramount’s legal team sent a strongly worded letter to Warner Bros. Discovery CEO David Zaslav on Wednesday, claiming his company was acting unfairly.

According to Paramount’s lawyers, Warner Bros. Discovery didn’t act fairly in the deal-making process, ignored its responsibility to shareholders, and seemed determined from the start to favor one particular buyer.

The bidder is Netflix.

Initially, Paramount, backed by the Ellison family, seemed most likely to acquire Warner Bros. Discovery. They began pursuing the deal in September, just after completing their purchase of Paramount, which includes popular networks like HBO and CNN.

Warner Bros. Discovery’s board turned down Paramount’s initial offer and decided to consider bids from other companies, including Netflix and Comcast (the owner of NBCUniversal).

Sources familiar with the deal say Paramount’s position has recently weakened, giving Netflix – which has primarily offered cash – a stronger advantage.

At first, experts believed the close relationship between the Ellison family and President Trump would likely lead to fast and easy approval for their acquisition of Paramount. President Trump publicly supported the deal, stating Paramount should be allowed to proceed, which would give the Ellisons control of both CBS News and CNN.

I heard from someone involved in the bidding process – who isn’t allowed to be named publicly – that leaders in other countries who were already concerned about Trump weren’t happy about the Ellisons potentially controlling so much of the U.S. media. It really worried them.

Paramount referenced a recent discussion in Brussels where Warner International executive Gerhard Zeiler met with officials from the European Commission to explore a possible merger for Warner. European Commission Vice President Henna Virkkunen was also present at the meeting.

According to a letter from Paramount, discussions revealed worries that if the Ellison family buys Warner Bros. Discovery, it could create too much control within the media industry. This raises the possibility that the European Union might block a future merger between Warner Bros. Discovery and Paramount, as reported in a German newspaper.

Paramount stated that if this meeting happened, it would clearly show a hidden opposition to, or even an attempt to undermine, their offer.

Warner Bros. Discovery responded to Paramount on Thursday, confirming they had shared the letter with their board members as requested. They were defending their actions in the matter.

Warner Bros. Discovery’s board members take their legal responsibilities very seriously and have fully met those obligations, and they will continue to do so, according to the company’s lawyers.

Paramount has noted reports suggesting Warner Bros. is hoping Netflix wins the bidding process, which could result in a massive combined streaming and media company.

Netflix did not comment on the letter from Paramount.

Paramount’s letter suggests the company will not go away quietly.

Paramount’s lawyers stated they still believe their offer is the best option for Warner Bros. Discovery shareholders and want to continue discussing it. However, they now need guarantees and evidence that the process is fair and unbiased, both for Paramount and for the benefit of Warner Bros. Discovery’s owners.

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2025-12-04 21:31