Paramount Sues Warner Bros Over Secret Netflix Deal Details
David Ellison's company demands financial disclosure of the $83bn Netflix-Warner Bros transaction after failed acquisition attempts, claiming shareholders lack crucial information to make informed decisions.
David Ellison's Paramount Skydance filed a lawsuit against Warner Bros. Discovery in Delaware Chancery Court on January 12, demanding the media giant reveal financial specifics of its massive $83bn Netflix agreement. The legal action comes after Warner Bros rejected Paramount's eighth takeover bid.
The suit targets Warner Bros Discovery CEO David Zaslav and the company's board members. Paramount accuses them of violating disclosure obligations by withholding critical information from shareholders.
Missing Financial Details Spark Legal Battle
"WBD has failed to include any 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," Ellison wrote to Warner Bros shareholders.
The lawsuit seeks to force Warner Bros to provide information so "WBD shareholders have what they need to be able to make an informed decision as to whether to tender their shares into our offer."
Netflix Emerges as Surprise Winner
Warner Bros Discovery started fielding acquisition offers in October 2025. Paramount appeared positioned as the frontrunner, with Ellison establishing himself as Hollywood's next major power player. Netflix's December victory shocked industry watchers.
Paramount responded with a counteroffer and attempted hostile takeover. Many view Netflix's potential Warner Bros acquisition negatively for cinema's future. Some consider Ellison's alternative even worse.
Controversial Moves Under Ellison's Leadership
Ellison's Paramount transformation has drawn criticism, especially his efforts to gain favor with the Trump administration. The company greenlit Rush Hour 4 with director Brett Ratner after Trump's request.
His appointment of The Free Press's Bari Weiss as CBS News head created controversy. Weiss reportedly blocked stories critical of the Trump administration from 60 Minutes. Her CBS News overhaul with anchor Tony Dokoupil faced harsh criticism within two weeks.
Ellison allegedly hopes to court Trump by promising to reshape CNN, a Warner Bros asset the president has criticized for its coverage.