Paramount Sues Warner Bros. Over Potential Netflix Deal, More Updates

Paramount has filed a lawsuit against Warner Bros. Discovery (WBD) regarding the potential Netflix deal.

It’s no secret that Netflix may be acquiring Warner Bros., which owns DC, at some point in the future, as the streaming service previously announced plans to purchase the David Zaslav-led company. The deal is not yet set in stone, as there are still many details that need to be worked out. 

It’s also no secret that David Ellison’s Paramount Pictures is also interested in Warner Bros. Pictures, as the company has repeatedly tried to purchase the company. The studio’s current offer is for $30 per share.

What is the update on the Warner Bros., Paramount, and Netflix situation?

Per Deadline, Paramount has now filed a lawsuit to essentially get more “basic information” regarding the potential Netflix deal.

More specifically, the lawsuit asks “the court to simply direct WBD to provide disclosure about how it valued the Global Networks stub equity, how it valued the overall Netflix transaction, how the purchase price reduction for debt works in the Netflix transaction, or even what the basis is for its ‘risk adjustment’ of our $30 per share all-cash offer.”

Deadline’s article explains, “[Netflix’s] deal is for $27.75 in cash and some Netflix stock to buy WBD’s studio and streaming assets. WBD’s linear television business, Discovery Global, will be spun off into a separate public company in the third quarter, before the Netflix deal closes…Paramount is offering to buy all of WBD…Netflix and Paramount deals both require regulatory approval and could take 12-18 months to close.”

Additionally, Paramount now “intends to nominate directors for election at the Warner Bros. Discovery 2026 annual meeting to solicit against the approval of the Netflix transaction.” If this plan is successful, this means that Warner Bros. Discovery’s slate of directors could become inhabited by people who want to see the Paramount deal go through over the Netflix one.

The article further notes, “Paramount will also propose an amendment to WBD’s bylaws to require WBD shareholder approval for any separation of Global Networks. If WBD calls a special meeting ahead of its annual meeting to vote on the Netflix Agreement, Paramount will solicit proxies against such approval.”

Originally reported by Brandon Schreur at SuperHeroHype.

Source: Comingsoon.net