Paramount Skydance (PSKY.O) intensified its fight to acquire Warner Bros Discovery (WBD.O) on Monday by filing a lawsuit demanding more information about Netflix’s $82.7 billion rival offer and announcing plans to nominate directors to Warner Bros’ board, Reuters reported. The moves mark some of Paramount’s most aggressive steps yet to persuade shareholders that its hostile $30-per-share all-cash bid is superior to Netflix’s $27.75-per-share cash-and-stock deal.
The ongoing battle for Warner Bros’ storied film and television studios, including prized franchises such as “Harry Potter” and the DC Comics universe, has heated up between the CBS-owned Paramount and Netflix. Paramount also said it would propose a bylaw amendment requiring shareholder approval for any separation of Warner Bros’ cable TV business, a key component of Netflix’s deal. The studio has argued that the cable spinoff’s value is negligible and reiterated its amended $108.4 billion bid after a prior rejection by the Warner Bros board. The offer includes $40 billion in equity personally guaranteed by Oracle co-founder Larry Ellison, father of Paramount CEO David Ellison, and $54 billion in debt, according to Reuters.
In a shareholder letter, Paramount claimed that Warner Bros had failed to demonstrate that the Netflix transaction was financially superior to its own offer. “Unless the WBD board of directors decides to exercise its right to engage with us under the Netflix merger agreement, this will likely come down to your vote at a shareholder meeting,” the letter stated. Netflix and Warner Bros did not immediately respond to requests for comment.
Market reactions were modest but notable: Warner Bros shares fell 1.5% in early trading, while Netflix ticked up 0.8% and Paramount 0.3%. Paramount’s campaign emphasizes that its all-cash offer provides greater certainty and a smoother path through regulatory approvals compared with Netflix’s deal, Reuters noted. Analysts also pointed to the weak performance of recent cable spinoffs, including Comcast’s Versant, as supporting Paramount’s case that shareholders may benefit more from its bid.
Paramount’s tender offer is set to expire on January 21, though the company has the option to extend it, keeping the high-stakes showdown for one of Hollywood’s most valuable content libraries in play.
