The Paramount vs. Warner Bros. Discovery $WBD ( ▼ 1.68% ) saga just got messier.
Paramount Skydance $PSKY ( ▲ 0.75% ) is escalating its merger push by suing Warner Bros. Discovery in Delaware court to force more disclosure about WBD’s competing talks with Netflix $NFLX ( ▼ 0.06% ) , while also preparing to nominate a new slate of directors at an upcoming shareholder meeting.
WBD shares slipped about 2% Monday morning as investors digested the latest round of legal and boardroom warfare.
Paramount Goes After the Board
In a letter disclosed Monday, Paramount CEO David Ellison said the company plans to nominate a slate of WBD directors who would, “in accordance with their fiduciary duties,” enter into a transaction with Paramount.
That is basically the corporate version of: if you won’t take our deal, we’ll replace you with people who will.
It’s an aggressive shareholder pressure tactic, and it signals Paramount is not backing off quietly.
Lawsuit Targets Netflix Negotiations
Ellison also disclosed that Paramount has filed a lawsuit against WBD in Delaware, aiming to compel the company to release “basic information” about its deal process, specifically surrounding Netflix’s competing bid.
The pitch is that shareholders need enough transparency to compare Paramount’s offer versus Netflix’s, and Paramount is now trying to make sure WBD’s board can’t keep details close to the chest.
Last Week Looked Like the End, This Week Says Otherwise
This follows Paramount’s move last week to reaffirm but not increase its $30-per-share bid for WBD.
That decision was widely interpreted as Paramount running out of room, since:
WBD’s board has already rejected the deal twice
going directly to shareholders is hard
Netflix’s presence complicates everything
But Monday’s move changes the read. Paramount may not be raising the price, but it is raising the pressure.
The Real Strategy: Make Netflix’s Path Painful
Even if Paramount loses, the message is clear: it’s not going to make Netflix’s acquisition easy.
By suing for more disclosure and threatening a board shake-up, Paramount is effectively trying to slow the process, raise the stakes, and force WBD shareholders to treat this like a real contest rather than a clean Netflix walk-in.
Bottom line: Paramount just turned this into a full-on hostile-style pressure campaign. Whether it wins or not, it’s now determined to drag Netflix’s bid into the open and make WBD’s board defend every step of the process.