Paramount sued in Delaware seeking details of Warner Bros’ Netflix deal, arguing its $108bn all-cash bid tops Netflix’s $82.7bn offer.
Paramount Skydance has filed a lawsuit against Warner Bros. Discovery seeking additional information about the media company’s proposed $82.7bn deal with Netflix, escalating its fight to gain control of the studio. The legal move marks a further intensification of the bidding war surrounding Warner Bros.’ film and television assets and its vast content library.
The David Ellison-led company also announced plans to nominate its own slate of directors to the Warner Bros. Discovery board, signalling one of its strongest efforts yet to persuade shareholders that its hostile all-cash offer of $30 per share is superior to Netflix’s $27.75-per-share cash-and-stock proposal.
Paramount and Netflix have been locked in a high-stakes contest for Warner Bros. Discovery, whose assets include iconic franchises such as Harry Potter and the DC Comics universe. In a letter to shareholders, Paramount said it intends to propose changes to Warner Bros. Discovery’s bylaws that will require shareholder approval for any separation of the company’s cable television business, a key element of the Netflix deal.
The company reiterated its position that the cable spinoff envisaged under the Netflix transaction holds little value, restating its amended bid valued at $108.4bn after the Warner Bros. board rejected it again. That revised offer includes $40bn in equity personally guaranteed by Oracle co-founder Larry Ellison, father of Paramount CEO David Ellison, alongside $54bn in debt financing.
In its communication to shareholders, Paramount argued that Warner Bros. Discovery has failed to demonstrate that the Netflix proposal offers greater financial value. The company said the board has provided multiple reasons for avoiding a deal with Paramount but has not claimed that the Netflix transaction is financially superior. Paramount added that if the board does not engage, the outcome may ultimately be decided by a shareholder vote.
Netflix and Warner Bros. Discovery did not immediately comment on the lawsuit. In early trading following the announcement, Warner Bros. Discovery shares fell 1.5%, while Netflix shares rose 0.8% and Paramount shares gained 0.3%.
Paramount’s tender offer is currently set to expire on January 21, though the company retains the option to extend the deadline.
