Paramount has filed a lawsuit to block Warner Bros. Discovery’s (WBD) agreement with Netflix.
The company is seeking full transparency over how WBD’s board reached its decision on the Netflix deal and has filed the suit in Delaware Chancery Court.
Paramount argues that its $30-per-share offer for the entirety of WBD is superior to Netflix’s proposal.
Under the Netflix agreement, WBD’s studio and streaming assets would be sold, while its linear networks would be spun off into a separate company, Discovery Global. Paramount claims that the spin-off’s equity value is zero. WBD management, meanwhile, maintains that Paramount’s offer is neither superior nor comparable to Netflix’s.
The company plans to nominate a slate of new board candidates and seek shareholder votes against the Netflix deal at WBD’s 2026 annual meeting.
Netflix said it is continuing the regulatory review process with the US Department of Justice and the European Commission. WBD dismissed the lawsuit as baseless and reaffirmed its support for the Netflix agreement.
