Paramount Skydance (PSKY) is questioning the “fairness and adequacy” of the Warner Bros. Discovery (WBD) sales process.
Paramount Skydance (PSKY) said Warner Bros. (WBD) isn’t being fair in its sales process and isn’t acting in the best interest of shareholders, according to a letter attorneys for Paramount wrote to the Warner Bros. board, CNBC reported. In particular, WBD appears to be favoring a Netflix bid over several offers from Paramount.
“It has become increasingly clear, through media reporting and otherwise, that WBD appears to have abandoned the semblance and reality of a fair transaction process, thereby abdicating its duties to stockholders, and embarked on a myopic process with a predetermined outcome that favors a single bidder,” according to the letter.
CNBC’s David Faber earlier reported that Netflix (NFLX) is the leading bidder for Warner Bros. (WBD) with a bid composed of 85% cash and 15% stock.
Warner Bros. Discovery (WBD) told CNBC it confirmed to Paramount (PSKY) that it had received the letter and it plans to share it with members of the WBD board.
“Please be assured that the WBD Board attends to its fiduciary obligations with the utmost care, and that they have fully and robustly complied with them and will continue to do so,” the company said in its response to Paramount.
Shares of Netflix (NFLX) and Warner Bros. (WBD) both dropped 1.4%, while Paramount Skydance (PSKY) fell 1.7%.