Paramount Skydance has initiated a lawsuit against Warner Bros. Discovery (WBD) to demand the disclosure of financial details concerning WBD’s $83 billion deal with Netflix. The action was led by Paramount’s chairman and CEO, David Ellison, who, on January 12, revealed intentions to nominate a slate of directors at WBD. These nominees, according to Paramount, would act on WBD’s rights under the Netflix agreement to engage with their offer and possibly enter into a transaction, fulfilling their fiduciary responsibilities.
In an open letter to WBD shareholders, Ellison asserted that Warner Bros. Discovery has not adequately explained how it assessed key components of the Netflix agreement. He highlighted concerns over the valuation of the Global Networks stub equity, the overall valuation of the Netflix deal, the mechanics behind purchase price reductions related to debt, and what he termed WBD’s “risk adjustment” pertaining to Paramount’s all-cash offer of $30 per share.
“WBD has failed to include any disclosure about how it valued the Global Networks stub equity, how it valued the overall Netflix transaction, how the purchase price reduction for debt works in the Netflix transaction, or even what the basis is for its ‘risk adjustment’ of our $30 per share all-cash offer,” Ellison stated.
On January 12, Paramount filed the lawsuit in Delaware Chancery Court, asking for an order that compels WBD to provide the requested information, ensuring shareholders can make informed decisions regarding Paramount’s offer. This lawsuit was filed only a month after Warner Bros. Discovery announced an agreement with Netflix in December, allowing the streaming service to acquire WBD’s film and television studios for $83 billion.
As Warner Bros. Discovery prepares for its 2026 annual shareholder meeting, Paramount announced plans to propose an amendment to WBD’s bylaws that would require shareholder approval for any separation of its Global Networks business. Ellison has also warned that if WBD calls a special shareholder meeting prior to the annual meeting to vote on the Netflix deal, Paramount will actively solicit votes against the approval.
Under the Netflix agreement, the streaming platform is set to pay $27.75 per share for WBD’s film and television studios, including HBO, HBO Max, and the gaming division. This transaction is anticipated to finalize after WBD’s planned spin-off of Discovery Global, which is expected to occur in the third quarter of 2026. The spin-off will likely include CNN, TBS, HGTV, Food Network, and Discovery+, according to reports from Variety.
Original Source: https://www.indiatodayne.in/entertainment/story/paramount-skydance-sues-warner-bros-discovery-over-usd-83-billion-netflix-deal-1330461-2026-01-13?utm_source=rssfeed
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Publish Date: 2026-01-13 10:49:00
