Paramount sues WBD over Netflix deal. WBD says Paramount’s price is still inadequate.
Ars Technica • • business
Key Points:
- Paramount Skydance has filed a lawsuit against Warner Bros. Discovery (WBD) in Delaware Chancery Court, challenging WBD's $82.7 billion deal to sell its streaming and movie businesses to Netflix, and asserting its own $108.4 billion hostile takeover bid is superior.
- Paramount CEO David Ellison criticized WBD for lack of transparency and fairness in the bidding process, demanding detailed financial disclosures and planning to nominate board directors to oppose the Netflix deal at WBD’s upcoming shareholder meeting.
- WBD has rejected Paramount’s offer, citing concerns over Paramount’s high debt financing, junk credit rating, and negative free cash flows, while defending the Netflix deal as offering greater shareholder value and financial stability.
- Paramount has secured a
