Paramount Skydance has taken its most aggressive step yet in the battle for control of Warner Bros. Discovery, filing a lawsuit on Monday to compel disclosure of details of a rival $82.7 billion deal with Netflix.
The David Ellison-led group said the legal action aims to provide shareholders with clearer insight into why Warner Bros. ’ board supports the Netflix transaction over Paramount’s competing offer. The lawsuit was filed in the Delaware Court of Chancery.
Paramount Skydance is also preparing to nominate its own directors to the Warner Bros board. The move signals a sharper push to convince investors that its $108.7 billion all-cash proposal offers better value.
Competing bids for a Hollywood giant
Paramount and Netflix are locked in a high-stakes contest for Warner Bros and its prized film and television assets. The studio’s library includes franchises such as Harry Potter and the DC Comics universe.
Last week, Warner Bros rejected Paramount’s latest proposal and urged shareholders to back the Netflix deal instead. Netflix’s offer combines cash and stock and values the assets at $27.75 per share.
Paramount Skydance sued Warner Bros Discovery for more information on a rival deal worth nearly $83 billion with Netflix, escalating a battle to take control of one of the most storied Hollywood studios https://t.co/BhMwFZzJdC pic.twitter.com/yla1eCOO6x
— Reuters (@Reuters) January 12, 2026Paramount argues its $30-per-share all-cash bid is financially superior and more likely to clear regulatory hurdles. In a letter to shareholders, the company said it would also seek changes to Warner Bros’ bylaws. The amendment would require shareholder approval for any future separation of the company’s cable television business, a key element of the Netflix agreement.
Lawsuit raises pressure on Warner Bros board
Paramount said Warner Bros has failed to explain why the Netflix deal offers better value. The company claims investors need full access to financial analyses before deciding whether to tender their shares.
“Time is of the essence,” Paramount said in its court filing, noting that decisions on extending its offer will depend on shareholder response before the January 21 deadline.
Paramount Skydance said it plans to nominate directors to Warner Bros. Discovery’s board to vote against the approval of a merger with Netflix and has filed a suit to force Warner Bros. to disclose information.
Geetha Ranganathan has more https://t.co/9tvap8UthN pic.twitter.com/3Svy1bJjjA
— Bloomberg TV (@BloombergTV) January 12, 2026Warner Bros dismissed the lawsuit as “meritless.” In a statement, the company said Paramount had not improved its bid or addressed what it described as clear weaknesses in the proposal.
Analysts remain sceptical about the legal route. Craig Huber of Huber Research Partners said the lawsuit may have little immediate impact. He added that a higher bid would likely matter more to shareholders.
High costs and market reaction
Warner Bros has warned it would owe Netflix a $2.8 billion termination fee if it exits the deal. Ending the agreement could trigger total costs of up to $4.7 billion.
Paramount’s revised proposal includes $40 billion in equity, personally guaranteed by Oracle co-founder Larry Ellison, and $54 billion in debt financing. Larry Ellison is the father of Paramount Skydance chief executive David Ellison.
On Monday, Warner Bros shares fell 1.8 per cent. Netflix stock rose 0.4 per cent, while Paramount Skydance gained 0.5 per cent.
With shareholder votes looming and legal pressure mounting, the outcome of one of Hollywood’s biggest takeover battles remains uncertain.
