Netflix accuses Paramount of attempting to sabotage the Warner Bros acquisition deal.
Netflix Accuses Paramount of Attempting to Sabotage Warner Bros Acquisition Deal
The streaming service Netflix has launched sharp criticism at Hollywood studio Paramount, accusing it of deliberately misleading Warner Bros. Discovery (WBD) shareholders during the battle for the right to acquire the latter.
The conflict unfolds against the backdrop of a prolonged rivalry between Netflix and Paramount for control of WBD. Previously, WBD's management reached a preliminary agreement with Netflix, but the deal has not yet received regulatory approval. Taking advantage of this situation, Paramount presented WBD with a more favorable financial offer, prompting the latter to resume negotiations with a new party.
According to emerging information, representatives of David Ellison, the head of Paramount, are prepared to increase the bid to $31 per share (previously $30 was offered) to secure an agreement. In a letter from the WBD board of directors to Paramount, it is confirmed that Paramount's financial advisor communicated a readiness to raise the offer, emphasizing that $31 is not the final figure.
At the same time, WBD made it clear that it does not consider Paramount's offer promising enough to conclude a more advantageous deal compared to the agreement with Netflix. In an official communication to Paramount, the WBD board of directors stated: "We continue to recommend the deal with Netflix and are fully committed to it." A special shareholder meeting to vote on the merger agreement with Netflix has already been scheduled for March 20, 2026.
In response, Netflix emphasized its flexibility and constructive approach to negotiations. The company's statement noted that Netflix granted WBD a seven-day deferral from fulfilling a number of obligations under the agreement so that it could finally settle the issue with Paramount. At the same time, Netflix expressed concern about the competitor's actions, which, in its opinion, only distract WBD shareholders and the entire industry.
Netflix paid particular attention to potential risks associated with the regulatory approval of a deal with Paramount. The company claims that Paramount has repeatedly stated a high likelihood of its proposal being approved by regulators, which, according to Netflix, could have misled WBD shareholders. The streaming service's statement emphasizes: "WBD shareholders should not think that Paramount has an easier or faster path to regulatory approval—that is not the case."