Paramount Hits Warner Bros. With Lawsuit Over $82.7B Netflix Deal Details

Paramount, backed by Skydance, has initiated a lawsuit against Warner Bros. Discovery (WBD) to compel the disclosure of financial details surrounding WBD’s $82.7 billion agreement with Netflix. Led by David Ellison, Paramount argues that WBD shareholders need this information to make an informed decision regarding Paramount’s takeover offer. The lawsuit, filed in Delaware Chancery Court, seeks to force WBD to provide details on the valuation of the Netflix deal and its assessment of Paramount’s $30-per-share all-cash bid.

This legal action follows WBD’s rejection of Paramount’s eighth offer and is accompanied by plans for a proxy fight, where Paramount intends to nominate its own directors for the 2026 annual meeting. Paramount contends that its offer is superior to Netflix’s, which values WBD’s film and TV studios, HBO, and games division at $27.75 per share, with a spin-off planned for Q3 2026. Ellison criticized WBD for failing to disclose how it valued certain assets and its risk adjustment of Paramount’s offer.

WBD has dismissed Paramount’s lawsuit as “meritless,” asserting that Paramount has not increased its offer beyond $30 per share and that the Netflix deal is financially superior, citing regulatory risks and debt concerns as reasons for rejecting Paramount’s bid. WBD claims Netflix’s deal is worth $82.7 billion, while Paramount’s bid is valued at $108.7 billion.

(Source：Mandatory)