Paramount Skydance Takes Warner Bros. Discovery to Court Over Netflix Deal Details
Paramount Skydance has taken Warner Bros. Discovery to court, seeking financial details about its massive Netflix deal. The legal move comes as part of Paramount’s ongoing effort to acquire WBD.
On Monday, David Ellison’s Paramount Skydance filed a lawsuit in Delaware Chancery Court demanding that WBD reveal how it valued the $83 billion Netflix agreement. Paramount also announced plans to launch a proxy fight, saying it will nominate directors who will use WBD’s rights under the Netflix deal to consider Paramount’s acquisition offer.
In an open letter to WBD shareholders, Paramount chairman and CEO David Ellison criticized the company for not disclosing key financial details. “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,” he wrote.
Paramount wants the court to force WBD to provide this information so shareholders can make informed decisions about Paramount’s $30 per share cash bid, which the WBD board has rejected, marking the eighth offer Ellison has made with backing from his father, Larry Ellison.
Ahead of WBD’s 2026 shareholder meeting, Paramount plans to propose changes to the company’s bylaws requiring shareholder approval for any separation of Global Networks. Ellison added that if WBD schedules a special meeting to approve the Netflix deal, Paramount will seek proxies to oppose it.
Paramount’s analysis suggests the Netflix deal undervalues WBD’s Global Networks division. Under the agreement, Netflix would pay $27.75 per share for WBD’s film and TV studios, HBO and HBO Max, and gaming division. This transaction is scheduled to occur after WBD spins off Discovery Global in the third quarter of 2026. The spin-off will include CNN, TBS, HGTV, Food Network, and Discovery+.
Paramount’s lawsuit highlights the tension between media giants as they negotiate one of the largest streaming deals in history. It also raises questions about whether WBD shareholders are receiving full transparency regarding the Netflix agreement.
Paramount is pushing hard to protect its interests and make sure shareholders see the full picture. The court battle will likely influence how aggressively other companies approach large streaming deals in the future. What do you think about Paramount’s legal action? Share your thoughts in the comments.
