Paramount accuses Warner Bros Discovery of unfair sale process, CNBC reports

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Dec 4 (Reuters) – Paramount Skydance has accused Warner Bros Discovery of running an unfair sale process that favors Netflix over other bidders, CNBC reported on Thursday, citing a letter sent by the newly merged media company.

Warner Bros Discovery reportedly received sweetened offers from potential bidders – Paramount, Comcast and Netflix – earlier this week after the HBO and CNN parent asked them to improve on their initial bids submitted in late November.

In the letter to Warner Bros Discovery CEO David Zaslav, Paramount’s legal team raised concerns over the “fairness and adequacy” of the bidding process, citing media reports that indicate WBD’s management favors Netflix’s proposal, CNBC reported.

The David Ellison-led company has requested confirmation on whether Warner Bros Discovery has formed an independent special committee of unbiased board members to evaluate offers and oversee the sale process, CNBC reported.

Warner Bros Discovery has confirmed to Paramount it had received the letter and would share it with members of its board, according to CNBC.

Reuters could not independently verify the report. Paramount, Warner Bros Discovery, Netflix and Comcast did not immediately respond to Reuters’ requests for comment.

Earlier on Thursday, CNBC reported that Netflix had emerged as the frontrunner in the acquisition process, presenting a proposal consisting of 85% cash for the assets it seeks to acquire.

Unlike Netflix and Comcast, which are targeting only Warner Bros Discovery’s studio and streaming businesses, Paramount has sought to purchase the entire company.

In October, the WBD board had turned down a roughly $60 billion bid from Paramount and subsequently launched a formal sales process.

(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Leroy Leo)