Paramount Escalates Battle for Warner Bros with Legal Showdown

Paramount Skydance has sued Warner Bros Discovery for details about its $82.7 billion deal with Netflix. Paramount, led by David Ellison, argues its $108.7 billion all-cash offer is superior and seeks to convince shareholders. The legal battle focuses on the financial analysis supporting Netflix's proposal.

Paramount Skydance has taken legal action against Warner Bros Discovery in a bid to obtain detailed information regarding its $82.7 billion agreement with Netflix. The lawsuit, filed in the Delaware Court of Chancery, marks a significant escalation in the ongoing struggle to acquire control of Warner Bros, one of Hollywood's most esteemed studios.

Currently, a fierce competition plays out between Paramount and Netflix to secure Warner Bros' prized film and television assets, including the lucrative 'Harry Potter' franchise and the DC Comics universe. Warner Bros recently declined Paramount's offer, urging stakeholders to endorse the Netflix proposal.

Amidst heightened tensions, Paramount proposes an amendment to Warner Bros' bylaws, aiming to mandate shareholder approval before any separation of the media giant's cable TV business, a critical component of the Netflix arrangement. Paramount insists its $108.7 billion cash bid, priced at $30 per share, is superior and likely to bypass regulatory challenges more smoothly than Netflix's cash-and-stock proposal at $27.75 per share.

(With inputs from agencies.)