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Paramount Sues Warner Bros. Discovery Over Netflix-Favored Deal, Launches Proxy Push Ahead of Shareholder Deadline

The complaint seeks detailed valuations of WBD’s TV networks to guide investors before they vote.

Overview

  • Paramount Skydance filed suit in Delaware seeking more information on why WBD’s board backed Netflix’s roughly $83 billion offer.
  • Netflix’s proposal covers only the studio and streaming assets, while Paramount has a $108.4 billion bid for the entire company, including TV networks such as CNN.
  • Warner Bros. Discovery called the suit unfounded and said Paramount has not addressed numerous defects in its offer or raised its price.
  • Paramount said it will nominate directors and propose bylaw changes requiring shareholder approval for any Global Networks spinoff at the upcoming meeting.
  • Shareholders have a window through Jan. 21 to act on Paramount’s offer, and reversing course would trigger a reported $2.8 billion break fee payable to Netflix.