Warner Bros. Discovery Sued by Paramount Pictures as Netflix Deal Hits a Major Roadblock
Things are getting messy around Warner Bros. Discovery, and the long-rumored Netflix acquisition suddenly looks a lot less certain. Paramount has officially filed a lawsuit against Warner Bros. Discovery, pushing back hard against a potential Netflix deal and demanding more transparency around how that agreement is being valued.
There’s been plenty of industry chatter about Netflix circling Warner Bros. Discovery, the company that owns DC Studios and a massive portfolio of studio and streaming assets.
Netflix has already announced its intent to acquire the David Zaslav-led company, but the deal isn’t finalized and still has plenty of hurdles ahead. Now, Paramount is stepping in and trying to slow the whole thing down.
David Ellison’s Paramount Pictures has been aggressively pursuing Warner Bros. Discovery for some time, repeatedly making offers to buy the company outright. The most recent bid reportedly sits at $30 per share, and Paramount clearly isn’t thrilled about being edged out by Netflix without a clearer look at the numbers.
According to Deadline, Paramount’s lawsuit is aimed at forcing Warner Bros. Discovery to provide what it calls “basic information” tied to the Netflix agreement.
The filing 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.”
The report breaks down the competing offers and the complicated structure behind them, explaining, “[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.”
Paramount appears concerned that separating Global Networks before final approval gives Netflix an advantage while limiting shareholders’ ability to fully evaluate the deal. The lawsuit is one move, but Paramount isn’t stopping there.
The company also plans to go directly after Warner Bros. Discovery’s board. Paramount “intends to nominate directors for election at the Warner Bros. Discovery 2026 annual meeting to solicit against the approval of the Netflix transaction.” If successful, that could reshape the board with members more aligned with Paramount’s offer rather than Netflix’s vision.
The pressure continues with a proposed change to the company’s bylaws. As Deadline 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.”
All of this adds up to a very public power struggle over the future of Warner Bros. Discovery. Netflix may still land the deal, but Paramount is making sure it won’t be easy or quiet.
With lawsuits, board challenges, and regulatory reviews all in play, this corporate showdown is just getting started.