Paramount Skydance plans to appoint a new slate of directors to the Warner Bros. board. Discovery with the aim of preventing the planned merger with Netflix (), in addition to having filed a lawsuit to obtain more information about the agreement.
Paramount CEO David Ellison said in a letter to the Warner Bros. board released on Monday that he will challenge the Netflix deal at Warner Bros.’ regular annual meeting. or at a special meeting called to approve the deal, if Warner Bros. decide to do one.
Ellison said he sued Warner Bros. in Delaware court to compel the company to disclose information that helps shareholders make an informed decision. Paramount accused Warner Bros. not to reveal how it values the cable TV assets it intends to spin off before selling the studios and streaming business to Netflix. Paramount said it will seek changes to Warner Bros.’s bylaws. so that shareholders can specifically vote on the spin-off.
Warner Bros. shares fell 1.5% in early trading in New York. Netflix rose slightly, while Paramount remained stable.
Paramount said it is standing by its $30-a-share offer for Warner Bros. and encouraged shareholders to accept the proposal already announced. The company is considering its bid for all of Warner Bros. higher than Netflix’s bid of $27.75 per share for the studios and streaming business. Netflix deal includes spin-off of cable channels CNN e TNT for Warner Bros. shareholders. before closing the transaction.
“We are committed to moving forward with our offer,” Ellison said in the letter. “We understand, however, that unless the WBD board decides to exercise its right to negotiate with us under the Netflix merger agreement, it will likely depend on its vote at a shareholder meeting.”
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