Paramount and Warner Bros logos are seen on this illustration taken Dec. 8, 2025. Reuters-Yonhap
Paramount Skydance on Monday sued Warner Bros Discovery for extra info on a rival $82.7 billion cope with Netflix, escalating a battle to take management of one of the crucial storied Hollywood studios.
The David Ellison-led firm additionally mentioned it deliberate to appoint administrators to Warner Bros’ board, in one among its most aggressive steps to persuade traders that its $108.7 billion all-cash bid is superior to Netflix’s cash-and-stock deal.
Paramount and Netflix have been in a heated battle for Warner Bros, its prized movie and tv studios and its intensive content material library, which incorporates “Harry Potter” and the DC Comics universe.
Warner Bros final week rejected Paramount’s newest supply, advising shareholders to vote in favor of the Netflix deal.
In a letter to shareholders, Paramount additionally mentioned it might suggest an modification to Warner Bros’ bylaws that may require shareholder approval for any separation of the media large’s cable TV enterprise, which is essential to the Netflix deal.
Paramount’s argument is that its all-cash bid of $30 per share for the entire of Warner Bros is superior to Netflix’s cash-and-stock supply of $27.75 per share for the studios and streaming property and can extra simply clear regulatory hurdles.
‘Elevate the bid. Cash talks’
The CBS mum or dad mentioned final week the worth of Warner Bros’ cable spinoff was just about nugatory and reiterated its amended bid after one other rejection from Warner Bros’ board. With Monday’s lawsuit, Paramount has escalated its actions, but it surely has not but elevated the value it’s keen to pay.
“I don’t assume the lawsuit issues a lot. It could take ages to get by means of the court docket system in the event that they full-on go that route,” Craig Huber, analyst at Huber Analysis Companions, mentioned. “If they need Warner Bros unhealthy sufficient, elevate the bid. Cash talks.”
Warner Bros has additionally mentioned it’s going to owe Netflix a $2.8 billion termination payment if it walks away from the settlement, a part of $4.7 billion in additional prices to finish the deal.
The amended proposal had included $40 billion in fairness personally assured by Oracle’s co-founder Larry Ellison, the daddy of Paramount CEO David Ellison, and $54 billion in debt.
“WBD has offered more and more novel causes for avoiding a transaction with Paramount, however what it has by no means mentioned, as a result of it can’t, is that the Netflix transaction is financially superior to our precise supply,” Paramount wrote within the investor letter.
“Except the WBD board of administrators decides to train its proper to interact with us underneath the Netflix merger settlement, this can doubtless come all the way down to your vote at a shareholder assembly,” it added.
Netflix and Warner Bros didn’t instantly reply to requests for remark.
Shares of Warner Bros have been down 1.5 p.c on Monday, whereas Netflix ticked up 0.6 p.c and Paramount 0.7 p.c.
Paramount filed the lawsuit in the Delaware Court docket of Chancery, looking for to pressure disclosure of the monetary evaluation behind the Warner Bros board’s assist for the Netflix merger.
The corporate argued the data is essential for traders weighing whether or not to tender their shares to Paramount earlier than the supply – which could be prolonged – expires on Jan. 21.
“Time is of the essence,” Paramount mentioned within the lawsuit towards Warner Bros, CEO David Zaslav and key investor John Malone, amongst others. “Any choice regarding an extension will rely, partially, on the variety of shares tendered.”
