Warner Bros. Exploration (WBD.US) acquisition battle is heating up: Netflix (NFLX.US) leads with a high offer but faces accusations of "procedural justice."

According to a person familiar with the matter, Netflix (NFLX.US) has submitted the highest bid among the many buyers competing to acquire Warner Bros. Discovery (WBD.US), making the competition for this potentially industry-shaping deal even more intense. It is reported that Netflix has submitted a proposal to acquire the desired assets, with 85% of the payment in cash. Previously, there were reports that the streaming giant plans to acquire Warner Bros. Discovery's studio and streaming division, with the expectation of bundling Netflix with HBO Max to lower consumers' streaming costs. Paramount Skydance Corp. (PSKY.US) has accused Warner Bros. Discovery of unfair practices in the sales process, favoring Netflix over other bidders. A copy of a letter shows that Paramount Skydance's legal team expressed concerns about the "fairness and adequacy" of the bidding process in a letter to Warner Bros. Discovery CEO David Zaslav. This was based on reports indicating that Warner Bros. Discovery management favored Netflix's proposal. The letter indicates that Paramount Skydance, led by David Ellison, has requested Warner Bros. Discovery to confirm whether an independent special committee composed of unbiased board members has been established to evaluate the bids and oversee the sale process. The legal team at Paramount Skydance stated in the letter: "We strongly urge you to authorize the formation of such a special committee, whose members should be directors free from any potential bias or external pressures conflicting with shareholder interests." Subsequently, Warner Bros. Discovery is seeking to solicit another round of bids before the end of Thursday. In fact, earlier this week, Warner Bros. Discovery received increased acquisition offers from potential bidders Paramount Skydance, Comcast Corporation Class A (CMCSA.US), and Netflix, after requesting them to raise their initial bids submitted at the end of November. It is understood that Warner Bros. Discovery received indications of interest from multiple companies starting in October 2025, when the board of Warner Bros. Discovery officially initiated a strategic review process due to receiving inquiries from various parties. Currently, the bidding war has entered a heated phase. The main bidding parties include Netflix, Comcast Corporation Class A, and Paramount Skydance. Paramount Skydance had sought to acquire the entire company. In October of this year, the board of Warner Bros. Discovery rejected Paramount Skydance's offer of around $60 billion and subsequently initiated a formal sale process. Furthermore, Comcast Corporation Class A's proposal involves merging its NBCUniversal business with Warner Bros. Discovery to create a larger media giant. Their offer involves a mix of cash and stock.