The Globe and Mail reports in its Tuesday edition that Paramount Skydance has sued Warner Bros. Discovery for details on a rival $82.7-billion deal with Netflix, escalating a fight for control of a major Hollywood studio.
A Reuters dispatch to The Globe reports that the David Ellison-led company plans to nominate directors to Warner Bros.' board to demonstrate that its $108.7-billion all-cash bid is superior to Netflix's cash-and-stock offer.
Paramount and Netflix are in a fierce competition for Warner Bros.
Warner Bros. last week rejected Paramount's latest offer, advising shareholders to vote in favour of the Netflix deal.
Paramount announced in a letter to shareholders that it will propose an amendment to Warner Bros.' bylaws, requiring shareholder approval for any separation of its cable TV business, which is crucial for the Netflix deal.
Paramount argues that its all-cash bid of $30 per share for Warner Bros. is better than Netflix's cash-and-stock offer of $27.75 per share and is likely to face fewer regulatory hurdles.
Paramount filed the lawsuit in the Delaware Court of Chancery, seeking to force disclosure of the financial analysis behind the Warner Bros. board's support for the Netflix merger.
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