• by Wayne Friedman , 2 hours ago

In a recent letter to Warner Bros. Discovery, Paramount Skydance referenced reports that its offer to buy WBD was seen in a “negative light.”

At the same time, the letter cited reports that a Netflix offer to buy WBD would be a “slam dunk.”

“These media reports echo similar indications that we have been hearing throughout this process, despite what we viewed as otherwise productive conversations that we have had with WBD leadership,” according to the company’s attorneys.

The letter asks whether “this reporting is accurate.”

In addition, Paramount will "seek confirmation as to whether WBD has appointed an independent special committee of disinterested members of its board to consider the potential transaction opportunities.”

Complicating the bidding process is that Warner Bros. Discovery has previously disclosed plans to split the company into two -- one that would include its streaming services (HBO Max, discovery+) and its studio operations, and the other its cable TV networks.

Netflix has pushed for buying just the former -- and is not interested in acquiring its cable TV networks, according to analysts.

According to reports, Paramount’s bid would be a 100% cash offer for WBD shares, and the Netflix offer would be for around 85%.

Before starting up its public process of examining a possible sale of WBD in late October, Paramount made three unsolicited offers for the entire company. The last was around $23.50. Since September 10, WBD stock price has virtually doubled from $12.54.

On Thursday morning, the stock price of WBD shares was down 1% to $24.30.

Like Netflix, Comcast has also made a bid, focusing solely on WBD’s studio/streaming business.

Comcast’s intention is to spin off NBCUniversal in that part of WBD’s operations.

Starting in January, Comcast’s plan to spin off its cable TV networks, Versant Media, will start up as a publicly traded company.