In a stunning escalation to the ongoing bidding war, the standoff over the WBD empire has officially gone public—and ugly. A blistering memo sent by Paramount claims the entire sales structure has been “tilted” away from their offer, raising the stakes on the Warner Bros. sale and calling it unfair. And now, with quotes, counter-quotes, and leaks flying across the entertainment press, the battle to claim one of Hollywood’s oldest studios is transforming into a corporate soap opera worthy of HBO itself.
At the center of the storm is David Ellison’s rapidly expanding Paramount–Skydance operation, which now argues that Warner Bros. Discovery has mishandled the bidding process and shown outsized affection for Netflix. The memo—published in full by CNBC—lays out multiple claims that Warner Bros. management is giving Netflix privileged treatment. This lines up with earlier reporting by the New York Post which claimed many internally at WBD favor Netflix in this process.
WBD CEO David Zaslav Speaks at a New York Times event – YouTube, New York Times Events
One portion of the letter asserts: “Several U.S. media outlets have reported on the enthusiasm by WBD management for a transaction with Netflix, and on statements by management that a transaction between WBD and Netflix would be a ‘slam dunk,’ while also referring to Paramount’s bid in a negative light.”
The letter goes further, alleging that some executives appear drawn to Netflix due to personal relationships—not hard financial logic.
A second section doubles down, stating: “Additional reporting since the submission of revised bids on December 1 has indicated that WBD’s ‘board has really warmed to’ a transaction with Netflix due to the ‘chemistry between’ WBD management and Netflix management.”
Netflix Co-CEO Greg Peters in an interview with Bloomberg – YouTube, Bloomberg Live
That’s not a small accusation. Essentially, Paramount is arguing that a multibillion-dollar media merger is being shaped by corporate vibes.
Warner Bros. Discovery, led by CEO David Zaslav, responded in equally formal fashion. Lawyers for the company issued a note assuring that everything is above 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,” they said.
The polite translation: “Calm down. We’re doing this correctly.”
Paramount Skydance CEO David Ellison being interviewed – YouTube, CNBC Television
But Paramount isn’t buying it. Their memo also suggests that Warner Bros. executives may be considering future job security when choosing between suitors. The letter includes the pointed line: “Paramount has a credible basis to believe that the sales process has been tainted by management conflicts, including certain members of management’s potential personal interests in post-transaction roles.”
Hollywood has seen messy corporate clashes before, but rarely do you see a bidding war for a major studio spill into the press with this level of hostility. Typically, these conversations happen behind closed doors with bland statements about “ongoing negotiations.”
Not this time.
Paramount clearly believes something is amiss, and they’re willing to say it loudly.
Warner Bros Discovery Logo
And with good reason: the stakes are massive. Paramount’s bid is built around acquiring the entire Warner Bros. Discovery structure—including its vast roster of cable channels—while Netflix reportedly wants to swallow the studio and HBO Max to supercharge its streaming dominance. Meanwhile, Comcast hovers on the sidelines with a separate proposal, though leaks suggest they aren’t the favored candidate.
Regulators are already licking their chops. Reports indicate that President Trump’s Department of Justice is preparing to challenge any Netflix–Warner Bros. deal, given the obvious concerns about combining Netflix’s reach with HBO Max’s catalog. Paramount, sensing an advantage, is pushing a narrative that their deal is not only cleaner—but fairer.
David Ellison talks to Bloomberg – YouTube, Bloomberg Podcasts
That word—unfair—is now the centerpiece of this rapidly escalating fight between Paramount and Warner Bros. The public pressure campaign signals Ellison’s team is done being polite, and with billions on the line, they clearly believe this battle is far from over.
Hollywood loves drama. But this time, the drama isn’t on screen—it’s over who gets to own the screen.
Do you believe that Warner Bros. is being unfair to Paramount? Sound off in the comments and let us know!
UP NEXT: If Paramount Loses Bid for Warner Bros. Discovery, Ellison Has a Backup Plan
No fair! No fair! Mom! No fair!
Completely agree with you. I’d add that Zaslav would much prefer Comcast NBCUniversal, as he would also likely also be able to retain a role.
Politics looms large as well. Ellison is conservative and wants to establish a centrist news organization led by Bari Weiss, while most in the entertainment industry are liberal and would prefer to keep a liberal ideological lock on both movie and TV media, which in WB’s case includes CNN.
What should be done both legally and ethically is to take the offer that is in the best financial interest of the WB shareholders.
Based on available reporting and information, that would be the Skydance Paramount offer.
If true, it is just another reason for the Government to bounce the deal back. I’d rather Skydance win out here, especially if, all other things being equal, they offered better shareholder value. To hell with the execs and the board members.
But that’s like saying I’d rather eat a poop sandwich than drink a poop shake. No matter which, it is still bad for customers.