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Paramount sued Warner Bros for details on its $82.7 billion Netflix deal, claiming its $108.7 billion all-cash bid is superior and seeking to sway shareholders and board decisions.
Previously, Warner Bros had urged its shareholders to reject the hostile takeover bid of Paramount saying that a merger with Netflix would expand consumer choice, strengthen distribution reach, and create new opportunities for the creative community.
Paramount Skydance has sued Warner Bros Discovery (WBD) demanding more information on the rival $82.7 billion deal with Netflix.
Reuters quoted Paramount stating that it planned to nominate directors to Warner Bros’ board, in one of its most aggressive steps to convince investors that its $108.7 billion all-cash bid is superior to Netflix’s cash-and-stock deal.
This comes days after WBD rejected Paramount’s latest attempt to buy the studio, saying its revised $108.4 billion hostile bid was ‘inadequate’ and amounted to a risky leveraged buyout.
As per the statement, the WBD board has advised its shareholders that December’s revised offer from Paramount was still not as appealing as the existing agreement with Netflix — even though Paramount said it had addressed many of Warner Bros.’ biggest concerns.
AFP quoted the company stating that the board “has unanimously determined that Paramount Skydance’s tender offer… is not in the best interests of WBD and its shareholders and does not meet the criteria of a ‘Superior Proposal’ under the terms of WBD’s merger agreement with Netflix”.
On Monday, Paramount in a letter to shareholders said it would table an amendment to Warner Bros’ bylaws requiring shareholder approval for any separation of the media giant’s cable TV business, which is key to the Netflix deal.
According to Reuters, Paramount’s argument is that its all-cash bid of $30 per share for the whole of Warner Bros is superior to Netflix’s cash-and-stock offer of $27.75 per share for the studios and streaming assets and will more easily clear regulatory hurdles.
Paramount on Monday filed the lawsuit in the Delaware Court of Chancery, seeking disclosure of the financial analysis behind the Warner Bros board’s support for the Netflix merger.
Paramount and Netflix have been fighting for the control of Warner Bros, and with it, its prized film and television studios. WBD’s lucrative entertainment franchises include “Harry Potter”, “Game of Thrones”, “Friends” and the DC Comics universe, as well as coveted classic films such as “Casablanca” and “Citizen Kane.”
Warner Bros. Discovery, whose operations span Warner Bros Entertainment, Turner Entertainment, DC Comics, Hanna-Barbera and Cartoon Network, added that Netflix’s portfolio of global content and studio capabilities would complement its own business rather than overlap with it.
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Washington D.C., United States of America (USA)
January 13, 2026, 08:06 IST
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