Warner Bros. Discovery Fires Back at Paramount Skydance Lawsuit
Warner Bros. Discovery has issued a strong response to Paramount Skydance’s lawsuit, which was filed in Delaware Chancery Court seeking more financial details regarding WBD’s deal with Netflix. In a statement released by WBD, the company referred to Paramount’s legal action as “meritless” and accused them of attempting to distract investors with their continued campaign to promote their $30/share offer as superior.
Despite Paramount’s efforts, WBD highlighted that the company has not increased the price of their acquisition offer or addressed the significant shortcomings in their proposal. Warner Bros. Discovery emphasized that Paramount’s lawsuit and attacks on their board are baseless, and that their board unanimously agreed that Paramount’s offer is not better than the merger agreement with Netflix.
The dispute between the two entertainment giants began when David Ellison, chairman and CEO of Paramount Skydance, initiated a bidding war for Warner Bros. Discovery shortly after Skydance Media acquired Paramount Global in August 2025. Despite eight consecutive offers from Ellison and his backers, including Larry Ellison, Oracle co-founder, WBD’s board ultimately chose to enter into a deal with Netflix.
Under the terms of the agreement with Netflix, Warner Bros.’s film and TV studios businesses, HBO and HBO Max, and games division will be acquired for $27.75/share in cash and stock. The deal is set to be finalized following WBD’s spin-off in the third quarter of 2026 of Discovery Global, which will include assets like CNN, TBS, HGTV, Food Network, and Discovery+.
David Ellison remains determined to acquire Warner Bros. Discovery and has continued to advocate for Paramount Skydance’s proposal as a more favorable option for WBD shareholders. Paramount has raised concerns about how WBD is valuing Discovery Global, prompting a lawsuit filed on January 12 to compel WBD to disclose these valuation details.
Paramount’s analysis suggests that the total value of the Netflix transaction to WBD shareholders is $27.42/share, factoring in the decline in Netflix’s share price. Paramount argues that shares in Discovery Global hold no value under the Netflix deal. In response to the legal action, Paramount has announced plans to nominate a rival slate of directors for election at the 2026 Warner Bros. Discovery shareholders meeting to push for engagement with their $30/share offer.
The battle between Warner Bros. Discovery and Paramount Skydance continues to unfold as both companies vie for control of one of the entertainment industry’s most sought-after acquisitions. Stay tuned for further developments as the saga unfolds.
