In a dramatic escalation of a corporate takeover battle, Paramount Skydance has initiated legal action against media giant Warner Bros Discovery (WBD). The lawsuit, filed on Monday, represents a bold move by Paramount Skydance as it aggressively pursues an acquisition that the WBD board has already rejected.
Legal Battle Over Shareholder Information
The core of the lawsuit revolves around transparency for shareholders. Paramount Skydance is asking the Delaware Court of Chancery, a court specializing in business disputes, to compel the WBD board to release specific information. Paramount argues this undisclosed data would allow shareholders to properly compare its offer against a competing bid from streaming titan Netflix.
David Ellison, the Chief Executive of Paramount Skydance, underscored this commitment in a direct letter to WBD shareholders. "We are committed to seeing our tender offer through," Ellison stated. He issued a clear warning that if WBD calls a special meeting to vote on the Netflix agreement, Paramount will actively campaign for shareholders to vote against it.
A Saga of Competing Offers
This legal maneuver is the latest chapter in a saga that began in late October 2025, when WBD announced it was open to acquisition offers. The board later accepted a proposal from Netflix. However, the Netflix deal has a key difference: it does not include WBD's television assets like CNN and the Discovery channel network.
Under the Netflix plan, these broadcast properties would be spun off into a new, publicly traded entity named Global Networks. Paramount Skydance's offer, in contrast, is for the entire company. The WBD board formally rejected Paramount's bid, setting the stage for the current hostile takeover attempt and legal fight.
Paramount's Strategy to Gain Control
Beyond the courtroom, Paramount Skydance is waging a proxy battle. The company announced plans to elect several of its own representatives to the WBD board at the upcoming annual shareholder meeting. This strategy aims to gain influence from within and strengthen its position to ultimately secure the acquisition.
The lawsuit and shareholder letter mark a significant intensification of pressure on Warner Bros Discovery's leadership. As both sides dig in, the outcome will reshape the media landscape, determining the fate of major brands like CNN and the competitive balance between traditional studios and streaming giants.
