Story perspectives

Paramount Sues Warner Bros. Over Netflix Deal Dispute

1/14/2026

Summary

Story summary

Paramount Skydance filed a lawsuit seeking disclosures about Warner Bros. Discovery's Netflix deal.
David Ellison, Paramount Skydance's CEO, argues Warner Bros. Discovery's board hasn't justified preferring Netflix's 27.75-per-share offer.
Paramount plans to nominate its directors at Warner Bros. Discovery's upcoming shareholder meeting.
Paramount also seeks bylaws changes to require shareholder approval for future spin-offs.
Warner Bros. Discovery's board continues to recommend rejecting Paramount's offer, citing insufficient value and risks.

History

Historical Context

Warner Bros. Discovery (WBD) was formed in 2022 from AT&T's WarnerMedia and Discovery, Inc. merger, facing scrutiny over its $43 billion debt. In late 2025, Paramount Skydance, led by David Ellison, launched a $108.4 billion hostile bid for WBD, arguing it offered better value than Netflix's $72 billion proposal. This bidding war highlights ongoing tensions in media consolidation and corporate governance.

1 of 2

Story summary

Paramount Skydance filed a lawsuit seeking disclosures about Warner Bros. Discovery's Netflix deal.
David Ellison, Paramount Skydance's CEO, argues Warner Bros. Discovery's board hasn't justified preferring Netflix's 27.75-per-share offer.
Paramount plans to nominate its directors at Warner Bros. Discovery's upcoming shareholder meeting.
Paramount also seeks bylaws changes to require shareholder approval for future spin-offs.
Warner Bros. Discovery's board continues to recommend rejecting Paramount's offer, citing insufficient value and risks.

1 / 2