Paramount sues Warner Bros. over sale details in a new effort to disrupt deal with Netflix
Warner Bros. rejects Paramount’s latest bid
You can now view the details of this merger and all the drama associated with it on the official website NetflixWBtogether.com. This site has put out a new press release detailing the response to Paramount’s latest bid. In short, Warners still doesn’t find Paramount’s offer to be superior to Netflix’s and the release states, “After a comprehensive and rigorous review process with its independent financial and legal advisors, the WBD Board reaffirmed its conclusion that the transaction with Netflix is in the best interests of WBD stockholders.”
Additionally, Warner Bros. Discovery board chair Samuel Di Piazza Jr. recently debunked that the company “didn’t like” Paramount and concluded, “We would be very open to do a transaction with Paramount.”
Paramount sues Warner Bros.
According to Deadline, in a new development after Warners rejected Paramount’s offer, Paramount is now suing Warner Bros. over the disclosure of sale details. Paramount intends to “nominate directors for election at the Warner Bros. Discovery 2026 annual meeting to solicit against the approval of the Netflix transaction.” Paramount has also now filed a suit in Delaware Chancery Court seeking disclosure of “basic information to enable WBD shareholders to make informed decision” of whether or not to tender their shares.
In a letter to WB shareholders after their latest was turned down, the studio stated an “advance notice window for WBD’s 2026 annual meeting opens in three weeks, and Paramount will nominate a slate of directors who, in accordance with their fiduciary duties, will exercise WBD’s right under the Netflix Agreement to engage on Paramount’s offer and enter into a transaction with Paramount.”
The company is also planning to propose an amendment to Warner Bros.’ bylaws in order to require WBD shareholder approval for any separation of their Global Networks. Should Warner Bros. call a special meeting ahead of its annual meeting to vote on the Netflix Agreement, Paramount will solicit proxies against such approval.
In regards to the lawsuit, Paramount states, “we filed suit this morning in Delaware Chancery Court to ask the court to simply direct WBD to provide 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.” It also says that the Warner Bros. shareholders need all the information “to make an informed decision as to whether to tender their shares.” The offer expires on January 21.
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