Paramount sues Warner Bros. Discovery over disclosure tied to Netflix acquisition

TechCrunch
TechCrunch
2h ago
Paramount filed a Delaware lawsuit seeking more financial disclosure from Warner Bros. Discovery about Netflix’s $82.7 billion acquisition as Paramount presses a competing $30-per-share cash offer.
Paramount sues Warner Bros. Discovery over disclosure tied to Netflix acquisition
A What happened
Paramount CEO David Ellison said Paramount filed a lawsuit against Warner Bros. Discovery in the Delaware Chancery Court seeking financial disclosure about Netflix’s $82.7 billion acquisition. Ellison said WBD has not provided information on how it valued the Netflix transaction, how a purchase price reduction for debt works, or the basis for a “risk adjustment” applied to Paramount’s $30-per-share all-cash offer. WBD’s board rejected Paramount’s latest bid last week, citing risk the deal could fall through. The Writers Guild of America opposes the acquisition and several U.S. senators warned it could raise consumer costs.
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Key insights

  • 1

    Paramount argues WBD shareholders lack key deal information: David Ellison said WBD shareholders need customary financial disclosure to make an informed investment decision on Paramount’s $30-per-share cash offer.

  • 2

    Opposition centers on market power and consumer impact: The Writers Guild of America cited antitrust law violations, and several senators warned the merger could increase consumer costs.

  • 3

    Public criticism includes cultural and industry concerns: John Pierce argued the acquisition would make Netflix a dominant cultural gatekeeper, and industry concerns cited jobs, theatrical releases, and diverse representation.

Takeaways

Paramount is pursuing court-ordered disclosure from Warner Bros. Discovery while the Netflix acquisition faces board resistance to Paramount’s bid and broad political, labor, and industry opposition.

Topics

Culture & Society Media Business & Markets Mergers & Acquisitions Law & Public Safety Courts

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