Paramount Skydance Files Lawsuit and Seeks Board Seats in Warner Bros Takeover Battle

Paramount Skydance has escalated its hostile takeover bid for Warner Bros Discovery by filing a lawsuit in Delaware Court seeking disclosure of the financial analysis behind Warner Bros' $82.7 billion merger agreement with Netflix. Paramount argues its $108.7 billion all-cash offer is financially superior to Netflix's cash-and-stock deal and plans to nominate its own directors to Warner Bros' board to influence shareholder decisions. Warner Bros' board has rejected Paramount's offer, advising shareholders to support the Netflix transaction, which includes a planned spinoff of the cable TV business. Paramount also proposes bylaw changes requiring shareholder approval for any separation of the cable networks, a key element of the Netflix deal. The dispute centers on valuation, deal certainty, and strategic considerations amid a high-profile bidding war for Warner Bros' film, TV studios, and content assets.