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Paramount Skydance Sues WBD and Launches Proxy Fight Over Board-Backed Netflix Deal

The Ellison-led bidder seeks court-ordered disclosures to help shareholders weigh its $30-per-share cash offer against Netflix’s package.

Overview

  • Paramount Skydance filed a Delaware Chancery Court lawsuit demanding Warner Bros. Discovery disclose how it valued the Netflix transaction, the Global Networks spin-off and related debt adjustments, and its “risk adjustment” to Paramount’s offer.
  • Paramount said it will nominate a slate of directors at WBD’s 2026 annual meeting, propose a bylaw requiring shareholder approval for any separation of Global Networks, and solicit proxies against the Netflix agreement if a special vote is called.
  • Under the rival bids, Paramount offers $30 in cash per WBD share to acquire the entire company with funding that includes a $40 billion equity guarantee from Larry Ellison, while Netflix’s $27.75-per-share cash-and-stock deal covers studios and streaming and leaves cable networks to be spun off.
  • WBD’s board has repeatedly rejected Paramount’s proposals and continues to endorse the Netflix agreement, and a WBD statement reported Monday characterized Paramount’s suit as meritless.
  • Paramount’s tender offer runs through Jan. 21 with the option to extend, as regulatory scrutiny and political pressure grow, including President Trump’s public call to block the Netflix–WBD deal.