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Paramount Sues Warner Bros. Discovery and Moves to Oust Directors in Clash Over Netflix Deal

Paramount seeks court-ordered disclosures to arm investors before a Jan. 21 tender deadline.

Overview

  • Paramount Skydance filed a Delaware Chancery Court suit demanding Warner Bros. Discovery reveal how it valued the Netflix transaction and the planned Global Networks spinoff, including debt-related price adjustments and the board’s “risk adjustment” to Paramount’s offer.
  • David Ellison said Paramount will nominate a slate of directors at WBD’s 2026 annual meeting and will solicit votes against any special meeting to approve the Netflix agreement.
  • Paramount will also propose a bylaw change requiring WBD shareholder approval for any separation of Global Networks, a key element of the Netflix structure.
  • WBD’s board reiterated its rejection of Paramount’s $30-per-share all-cash hostile bid (about $108.4 billion with a personal equity guarantee from Larry Ellison) and defended the endorsed Netflix package valued at $27.75 per share and $82.7 billion in enterprise value, calling Paramount’s claims meritless.
  • Political pressure intensified as President Donald Trump publicly urged regulators to block the Netflix–WBD merger, while Paramount’s tender offer remains set to expire Jan. 21, with potential for extension.