Paramount Skydance has intensified its takeover battle for Warner Bros Discovery by seeking more transparency around the Netflix deal details. On Monday, the company filed a lawsuit in the Delaware Court of Chancery. It wants Warner Bros to disclose the financial analysis behind its support for a rival agreement with Netflix.
The lawsuit marks a major escalation in the fight to control one of Hollywood’s most valuable studios. Warner Bros owns major film and television assets. These include the Harry Potter franchise and the DC Comics universe.
Paramount Skydance, led by David Ellison, is offering an all-cash bid worth $108.7 billion. This equals $30 per share for Warner Bros. In comparison, Netflix has proposed an $82.7 billion cash-and-stock deal. That offer values Warner Bros assets at about $27.75 per share.
According to Paramount, the Netflix deal details are still unclear. The company argues that shareholders deserve full information before voting. It says transparency is essential as investors decide whether to accept Paramount’s offer or support the Netflix merger.
In addition to the lawsuit, Paramount said it plans to nominate new directors to Warner Bros’ board. It also wants to amend company bylaws. The change would require shareholder approval for any separation of Warner Bros’ cable business. That cable spinoff is a key part of the Netflix deal details.
Warner Bros recently rejected Paramount’s latest proposal. The board advised shareholders to vote in favor of the Netflix agreement instead. Warner Bros also warned that ending the Netflix deal would trigger heavy costs. These include a $2.8 billion termination fee and total expenses of up to $4.7 billion.
Paramount disputes the value of the cable business. It claims the unit is nearly worthless. The company insists its all-cash offer would face fewer regulatory hurdles. It also argues that its bid provides clearer value than the Netflix structure.
Market analysts remain cautious. Some say the lawsuit may not change the outcome quickly. They note that courts can take a long time to decide such cases. Others believe Paramount may need to raise its bid to win shareholder support.
Warner Bros responded by calling the lawsuit meritless. The company said Paramount has not addressed key weaknesses in its proposal. Netflix has not publicly commented on the legal action.
As the deadline for tendering shares approaches, the focus remains on the Netflix deal details. Investors are watching closely, as the final decision will shape the future of one of Hollywood’s most influential media groups.
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