Paramount Skydance Sues Warner. Bros Discovery For Disclosure On Sale Process Regarding Pending Netflix Deal – AfroTech

Paramount Skydance is still pursuing the acquisition of Warner Bros. Discovery.

As AFROTECH™ previously told you, Netflix agreed to acquire Warner Bros. Discovery (WBD) in a deal valued at approximately $82.7 billion (equity value of $72.0 billion). The deal was described as one that would define the “next century of storytelling” and was approved unanimously by both companies’ boards of directors.

Paramount Skydance also shared that it had expressed intent to purchase Warner Bros. Discovery with an “all-cash tender offer to acquire all of the outstanding shares of Warner Bros. Discovery, Inc,” amounting to $30.00 per share, equating to an enterprise value of $108.4 billion, as AFROTECH™ reported separately. Paramount said it had submitted six proposals to Warner Bros. Discovery over a 12-week period, which had not gained the company’s attention, prompting outreach to its shareholders and board of directors.

Paramount Skydance also stated it believes its offer would be more favorable for Warner Bros. Discovery to consider. The Netflix deal is anticipated to involve an extended regulatory process, and unlike Netflix, Paramount’s offer is for the entirety of WBD, including its Global Networks linear cable business.

“WBD shareholders deserve an opportunity to consider our superior all-cash offer for their shares in the entire company,” David Ellison, chairman and CEO of  Paramount Skydance, said in a Dec. 8 press release. “Our public offer, which is on the same terms we provided to the Warner Bros. Discovery Board of Directors in private, provides superior value and a more certain and quicker path to completion.”

Warner Bros. circled back to reaffirm its interest in a deal with Netflix, calling it a more “superior, more certain value” for its shareholders.

Paramount Skydance is now suing Warner Bros. Discovery in its quest to acquire the company. CNBC reports that in a lawsuit filed Monday, Jan. 12, Paramount is asking a Delaware court to compel Warner Bros. Discovery to share details on the sale process and the pending Netflix deal.

“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 said in a letter shared with WBD shareholders.

“WBD shareholders need this information to make an informed investment decision on our offer – and importantly, Delaware law has consistently required that such information be provided to shareholders,” he added. “Following the process prescribed under Delaware law, we filed suit this morning in Delaware Chancery Court to ask the court to simply direct WBD to provide this information so that WBD shareholders have what they need to be able to make an informed decision as to whether to tender their shares into our offer.”

Ellison also said that Paramount Skydance will nominate directors to the Warner Bros. Discovery board at WBD’s 2026 annual meeting. The announcement follows Warner Bros. Discovery doubling down on its stance, with its board of directors requesting that shareholders reject Paramount’s bid.

“We have a signed merger agreement with Netflix, it’s a compelling value, a clear path to closing and protections for our shareholders if something stops the close, whatever that might be,” Warner Bros. Discovery board Chairman Samuel Di Piazza told CNBC’s David Faber on “Squawk Box.”