Paramount Skydance has filed a lawsuit against Warner Bros. Discovery (WBD) to compel greater financial disclosure regarding WBD's proposed $82.7 billion deal with Netflix. The lawsuit, filed in Delaware, is the latest move in Paramount's hostile takeover bid for WBD, arguing that shareholders lack the necessary information to evaluate the merits of the Netflix transaction compared to Paramount's all-cash offer of $30 per share.
In addition to the legal challenge, Paramount announced its intention to nominate a slate of directors to the WBD board. This initiates a proxy fight aimed at replacing current board members with directors who would be open to engaging with Paramount's takeover offer. Paramount contends its bid for the entire company is financially superior to the Netflix deal, which would see Netflix acquire WBD's studio and streaming assets while spinning off its cable networks.