NEW YORK – May 14, 2024 – Paramount Skydance has voiced significant concerns regarding the ongoing sale process for Warner Bros. Discovery (WBD), alleging that the procedure is “contaminated by management conflicts” and appears to favor an offer from Netflix. In a formal letter addressed to David Zaslav, CEO of WBD, Paramount’s legal representatives suggested that WBD’s board of directors is pursuing a biased process with a predetermined outcome designed to benefit Netflix.

Paramount contends that certain members of WBD’s management hold personal interests in post-transaction positions and compensation, which are unduly influencing the sale process. The company also criticized what it perceives as a lack of impartiality, pointing to reports indicating WBD management’s apparent enthusiasm for a potential merger with Netflix.

In response to these accusations, Warner Bros. Discovery has defended the integrity of its board of directors, affirming its commitment to fulfilling all fiduciary obligations to shareholders.

Paramount is urging WBD to appoint an independent special committee to thoroughly evaluate all existing offers. The company previously made its own offers for WBD, which were also mentioned in the context of these recent allegations. Furthermore, the dispute highlights earlier amendments made to the employment contracts of WBD executives prior to the potential sale.