Posted in: HBO, Max, Movies, Netflix, Opinion, Paramount+, TV, TV | Tagged: comcast, netflix, opinion, paramount, warner bros discovery

Paramount Goes "Mean Girls" on Netflix, Comcast in Second WBD Letter

Reports are Paramount Skydance made its case to Warner Bros. Discovery about why a deal with either Netflix or Comcast wouldn't work.

Just to be clear? There's never going to be a way of knowing what's really going on behind the scenes with Netflix, Paramount Skydance, and Comcast NBCUniversal when it comes to their submitted bids for Warner Bros. Discovery (WBD) until a final deal – if there is one – is announced. That's the only way of knowing who the winner (and losers) will be in all of this. But when it comes to the public relations battle, it doesn't seem as if David Ellison is too happy with how things are going for Paramount Skydance – and it looks like they're pointing a finger at WBD.

Earlier today, we learned that lawyers for Paramount Skydance sent a letter to WBD CEO David Zaslav, expressing their "grave concerns" that WBD has "embarked on a myopic process with a predetermined outcome that favors a single bidder," Netflix. The letter claims that Paramount Skydance "agreed to certain standstill arrangements in exchange for the opportunity to participate in a truly competitive and unbiased bidding process. Paramount did not bargain for WBD to foster, whether intentionally or unintentionally, a tilted and unfair process."

According to The Wall Street Journal, Paramount Skydance wasn't quite done with the letter-writing. In a second attempt, Paramount Skydance tried to make the case that neither Netflix nor Comcast would be able to survive a federal regulatory investigation, noting that each "presents serious issues that no regulator will be able to ignore." The letter argued that "Netflix's dominance in streaming and Comcast's presence as a leading broadband and MVPD player each present unique and serious antitrust concerns that guarantee a long, expensive review process and imperil closing either deal. Paramount is the easier path, and its outcome is assured." Focusing on the rumored frontrunner Netflix, the latter added, "The simple truth is that a deal with Netflix as the buyer likely will never close. Netflix is the only remaining Big Tech company that has not faced serious global antitrust enforcement, but attempting to acquire the WBD assets will change that."

A couple of things to keep in mind. Previously, reports surfaced that WBD turned down three of Ellison's prior offers, and that was before a second round of bids was requested. Additionally, while Paramount Skydance is pitching to purchase WBD in its entirety, Netflix and Comcast/NBCUniversal are focusing on acquiring only the streaming and film/TV studios. WBD entered the bidding process by making it clear that they are under no obligation to accept any bid and could continue moving forward with their plan to split the company into two distinct and separate entities by April 2026.

Ellison's Paramount Skydance's argument that only it could obtain the federal approval needed for a merger comes amid concerns that Trump and his administration are beginning to put their thumb on the scale in favor of Ellison's Paramount Skydance having the winning WBD bid. Trump has praised Ellison and his company on social media and during press engagements, with Ellison's hiring of The Free Press' Bari Weiss to head CBS News seen by some as an "olive branch" to Trump, signaling that CBS News will take a softer approach to criticizing him moving forward. In addition, rumblings have grown louder this week that Trump's team would seek to entangle Netflix in legal red tape if the streamer were to receive the winning bid. Interestingly, there have been no rumblings about the Trump DOJ investigating the ramifications of Paramount Skydance's plans to acquire two major media companies in less than three years.

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