Paramount Skydance sues Warner Bros. Discovery over sale process disclosure
Paramount Skydance filed suit in Delaware court demanding Warner Bros. Discovery disclose details of its Netflix deal valuation as it pursues a $108 billion hostile takeover bid.
January 12, 2026
Paramount Skydance filed suit Monday in Delaware Chancery Court against Warner Bros. Discovery and CEO David Zaslav, seeking to compel the company to disclose information about its pending sale process and Netflix transaction.
In a letter to WBD shareholders, Paramount Skydance CEO David Ellison said the lawsuit aims to direct Warner Bros. Discovery to provide details the company has withheld. "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.
The legal action represents the latest escalation in Paramount Skydance's hostile pursuit of Warner Bros. Discovery. The company has maintained its $30-per-share all-cash offer for the entire company, valuing the acquisition at approximately $108 billion. Ellison urged shareholders to tender their shares to Paramount Skydance.
Warner Bros. Discovery's board rejected Paramount Skydance's offer unanimously on Saturday, determining the $108 billion bid was riskier and less advantageous than its existing agreement with Netflix. According to the board's assessment, Paramount Skydance's proposal would require substantial debt financing, increasing uncertainty about deal completion. The company recommended shareholders reject the Paramount Skydance bid and reaffirmed support for the Netflix agreement, valued at approximately $82 billion.
Under the Netflix deal announced last month, Netflix would acquire Warner Bros. studio and HBO Max streaming service for $27.75 per share in cash and stock. Warner Bros. Discovery shareholders are promised an additional $3 per share when the company sells its cable properties—CNN, TNT, and Discovery—in a separate transaction.
Paramount Skydance has characterized the Netflix deal as facing significant regulatory uncertainty that could jeopardize both the transaction and Netflix itself, according to sources familiar with the company's strategy. The company has emphasized to investors the challenges and complexities surrounding the Netflix acquisition's completion.
Ellison's letter to shareholders stressed that the court action seeks to ensure WBD shareholders have the information necessary to make informed decisions about the competing bids.