Home / Business and Economy / Paramount Claims WBD Sale Process Tainted
Paramount Claims WBD Sale Process Tainted
4 Dec
Summary
- Paramount alleges Warner Bros. Discovery sale process is predetermined.
- Concerns raised over management conflicts and potential personal interests.
- Paramount insists on a fair, competitive, and unbiased bidding process.
Paramount Skydance has formally accused Warner Bros. Discovery (WBD) of conducting a tainted sale process, alleging it is unfairly predetermined to favor a single bidder, Netflix. In a letter sent to WBD CEO David Zaslav, Paramount's lawyers expressed "grave concerns" about management conflicts and potential personal interests influencing the board's decisions. They cited media reports highlighting WBD management's enthusiasm for a Netflix deal.
The accusations stem from Paramount's second-round bid, an all-cash offer for the entire company, which they believe offers maximum value to stockholders. Paramount argues that WBD appears to have abandoned a fair transaction process, thereby abdicating its duties to shareholders. The company is seeking confirmation that an independent special committee has been appointed to ensure impartiality.
Warner Bros. Discovery's legal team acknowledged receipt of Paramount's letter, assuring that the WBD board is carefully attending to its fiduciary obligations and has fully complied with them. Paramount stated it did not agree to standstill arrangements for a tilted process, insisting on assurances for a fair and independent bidding procedure.
