Things are quite tense with the possible purchase of Warner Bros. Discovery. Although Paramount had been circling the company with several offers, now strong competitors are beginning to emergeincluding streaming giant Netflix.
This week, Paramount, Netflix and Comcast submitted second-round proposals to acquire some or all of Warner Bros. assets.
Big N presented a mostly cash offer, and all three companies presented higher offers than their initial offers, according to people close to the matter who asked not to be identified due to the confidentiality of their negotiations (via CNBC).
However, now Paramount Skydance has criticized the way Warner is handling its sales processas it considers that it is favoring Netflix more.
Paramount accuses Warner of favoring Netflix in its sales process
Paramount’s lawyers sent a letter to Warner to inform its CEO, David Zaslav, that they question the impartiality and relevance of his company’s sale process, which began last October.
“It is increasingly evident from the media and other sources that WBD appears to have abandoned the appearance and reality of a fair transaction process, thereby failing to meet its obligations to shareholders, and embarked on a short-sighted process with a predetermined outcome that favors a single proponent.
We specifically request and expect this letter to be shared and discussed with the entire WBD board of directors,” the letter details.
In turn, Warner responded by stating that the company is fulfilling “its fiduciary obligations with the utmost care.”
“I guarantee that the WBD board of directors fulfills its fiduciary obligations with the utmost care, has fulfilled them fully and rigorously and will continue to do so”, he details.
Internal sources informed the media that Warner expects to announce a winner next weekso we’ll soon know who will take over the company, Paramount, Netflix or Comcast. Who do you think will win the day?