Paramount Skydance’s legal battle with Warner Bros. Discovery over the $83 billion deal with Netflix has escalated with a new lawsuit. Paramount Skydance, led by David Ellison, has taken legal action against Warner Bros. Discovery, demanding transparency regarding the financial details of their agreement with Netflix. In addition, Paramount has announced its intention to launch a proxy fight for Warner Bros. Discovery by nominating a slate of directors who will push for a transaction with Paramount.
The lawsuit comes after Warner Bros. Discovery’s board rejected Paramount’s latest all-cash bid of $30 per share. This marks the eighth offer from Ellison and his supporters, including his father Larry Ellison. Paramount has raised concerns about the lack of disclosure from Warner Bros. Discovery regarding the valuation of Global Networks, the Netflix transaction, and other crucial aspects of the deal.
In an open letter to Warner Bros. Discovery shareholders, David Ellison expressed disappointment in the board’s decision and emphasized the need for transparent information to enable shareholders to make informed decisions. Paramount has filed a lawsuit in Delaware Chancery Court seeking to compel Warner Bros. Discovery to provide the necessary information for shareholders.
Warner Bros. Discovery has not yet responded to Paramount’s legal action. In preparation for Warner Bros. Discovery’s 2026 shareholder meeting, Paramount plans to propose a bylaw amendment that would require shareholder approval for any separation of Global Networks. Additionally, if Warner Bros. Discovery calls a special meeting to vote on the Netflix agreement, Paramount will actively campaign against it.
The legal battle between Paramount Skydance and Warner Bros. Discovery highlights the complexities and challenges of corporate takeovers in the entertainment industry. As the situation unfolds, both companies will need to navigate legal proceedings and shareholder reactions to determine the outcome of this high-stakes conflict.
