Paramount Skydance Sues Warner Bros. Discovery Over Netflix Deal Disclosure

Paramount Skydance has filed a lawsuit against Warner Bros. Discovery (WBD) in Delaware's Court of Chancery, demanding disclosure of financial details and valuation data related to WBD's ongoing negotiations for a Netflix acquisition valued at around $82.7 billion.

The legal action escalates a broader battle for control of one of Hollywood's major studios. WBD's board has repeatedly rejected Paramount's hostile takeover bid—worth about $108.4 billion, or $30 per share—citing unacceptable financial risks for shareholders, despite its higher apparent value. Paramount argues that without detailed information on how WBD assessed Netflix's offer, investors cannot make informed decisions. The company is seeking a court order to force WBD to reveal the board's evaluation criteria and underlying calculations, which it claims justified prioritizing the streaming giant's deal.

WBD has dismissed the lawsuit as baseless, maintaining its focus on completing the Netflix transaction, which it views as a safer option with more certain value for shareholders. The media conglomerate has highlighted concerns over Paramount's proposal, including excessive debt and greater regulatory uncertainty.

In parallel, Paramount has signaled plans to nominate candidates for WBD's board of directors, aiming to shift the company's direction amid the power struggle. This corporate clash unfolds against the backdrop of fierce competition for content dominance in the streaming era, with potential ripple effects across major media firms.