Paramount Skydance has taken legal action as part of its hostile takeover bid for Warner Bros. Discovery. The company has filed a lawsuit demanding that Warner Bros. Discovery disclose detailed financial information tied to its $83 billion Netflix deal.
According to Variety, Paramount has officially announced plans to launch a proxy fight against Warner Bros. Discovery, nominating a slate of directors who it says will act in line with their fiduciary duties by exercising WBD’s rights under the Netflix agreement to engage with Paramount’s offer and potentially enter into a transaction with the company.
In an open letter to WBD shareholders on Monday, Paramount chairman and CEO David Ellison wrote, “WBD has failed to include any disclosure about how it valued the Global Networks stub equity, how it valued the overall Netflix transaction, how the purchase price reduction for debt works in the Netflix transaction, or even what the basis is for its ‘risk adjustment’ of our $30-per-share all-cash offer.”
Ellison confirmed that Paramount filed suit in Delaware Chancery Court to ask the court “to simply direct WBD to provide this information so that WBD shareholders have what they need to make an informed decision as to whether to tender their shares into our offer.”
According to Paramount, the Netflix deal would leave Discovery Global shares with no value, since Netflix would pay $27.75 per share for Warner Bros.’ main businesses, while Discovery Global would be spun off in 2026 with networks like CNN, HGTV, and Food Network.
Back in December 2025, Netflix officially announced that it would acquire Warner Bros. Discovery, including its film and television studios, HBO Max, and HBO, in a cash-and-stock transaction valued at $27.75 per WBD share, with a total enterprise value of approximately $82.7 billion (equity value of $72.0 billion).
Paramount’s offer is set to expire on January 21, though the company may choose to extend it.
