Paramount Skydance Takes Warner Bros. Discovery to Court Over Netflix Deal Details

Paramount Skydance is taking legal action against Warner Bros. Discovery in the latest twist in its attempt to take over the company. On Monday, David Ellison’s Paramount Skydance filed a lawsuit in Delaware Chancery Court, demanding that Warner Bros. Discovery share detailed financial information about its $83 billion deal with Netflix.

Paramount also announced plans to launch a proxy fight, saying it will nominate directors who would have the authority to engage with Paramount’s offer under the Netflix Agreement. This move comes after Warner Bros. Discovery’s board rejected Paramount’s latest all-cash bid of $30 per share, marking the eighth offer Ellison has made, backed in part by his father, Oracle co-founder Larry Ellison.

In an open letter to Warner Bros. Discovery shareholders, Paramount CEO David Ellison criticized the lack of transparency in WBD’s filings. “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. Ellison added that the lawsuit is meant to give shareholders the information they need to make informed decisions about Paramount’s offer.

Paramount plans to propose a change to WBD’s bylaws ahead of the company’s 2026 shareholder meeting. The amendment would require shareholder approval for any separation of Global Networks. Ellison said that if Warner Bros. Discovery calls a special meeting to vote on the Netflix agreement, Paramount will solicit proxies against it.

According to Paramount’s analysis, the Netflix deal may leave shares in the planned Discovery Global spin-off effectively worthless. The agreement with Netflix calls for the streaming service to pay $27.75 per share for Warner Bros.’s film and TV studios, HBO, HBO Max, and the gaming division. This deal would occur after Warner Bros. Discovery spins off Discovery Global in the third quarter of 2026, which is expected to include CNN, TBS, HGTV, Food Network, and Discovery+.

Paramount’s lawsuit and proxy fight mark the latest chapter in a tense battle over one of Hollywood’s largest media companies. It’s clear the fight over WBD’s future is far from over, and shareholders will be watching closely as both sides push forward.

Paramount’s move is a bold strategy to challenge WBD’s management while aiming to protect potential shareholder value. The lawsuit shows how high-stakes these media mergers have become. What do you think, is Paramount justified in seeking these details, or is this just another aggressive takeover move? Share your thoughts in the comments.