Bid war: Takeover battle intensifies as Paramount challenges Warner Bros-Netflix $82.7 billion pact
Warner Bros. Discovery last month agreed to sell its streaming and studio businesses to Netflix for $72 billion, following a sale process in which Paramount had been bidding for the company’s full portfolio, including its cable TV assets grouped under Discovery Global.
- Jan 12, 2026,
- Updated Jan 12, 2026 10:36 PM IST
Paramount Skydance has sharply escalated its bid to wrest control of Warner Bros. Discovery, filing a lawsuit on January 12 seeking more detailed disclosures on the media giant’s rival $82.7 billion deal with Netflix and signaling an imminent proxy fight.
The David Ellison-led company said it plans to nominate directors to Warner Bros. Discovery’s board at the 2026 annual meeting, one of its most aggressive moves yet to persuade shareholders that its hostile $30-per-share all-cash offer is superior to Netflix’s $27.75-per-share cash-and-stock proposal.
The legal action deepens a high-stakes battle between Paramount Skydance and Netflix for Warner Bros. Discovery’s prized film and television assets, including its vast content library featuring franchises such as Harry Potter and the DC Comics universe.
In a letter to shareholders, Paramount said it would also propose amendments to Warner Bros. Discovery’s bylaws that would require shareholder approval for any separation of the company’s cable television business — a key component of the Netflix transaction.
The lawsuit comes less than a week after Warner Bros. Discovery’s board once again urged shareholders to reject Paramount’s latest revised bid.
“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 said in the letter dated January 12.
Ellison also informed shareholders that Paramount intends to nominate directors to Warner Bros. Discovery’s board, adding a proxy contest to what has already become one of Hollywood’s most contentious takeover battles in years.
Warner Bros. Discovery last month agreed to sell its streaming and studio businesses to Netflix for $72 billion, following a sale process in which Paramount had been bidding for the company’s full portfolio, including its cable TV assets grouped under Discovery Global.
Under the Netflix agreement, Warner Bros. Discovery plans to spin off Discovery Global into a separate publicly traded company — a move Paramount has repeatedly criticized. Last week, Paramount said the cable spinoff was “virtually worthless” and reiterated its amended $108.4 billion bid after another rejection from the Warner Bros. board.
That amended offer included $40 billion in equity personally guaranteed by Oracle co-founder Larry Ellison, the father of Paramount CEO David Ellison, along with $54 billion in debt financing.
Paramount’s tender offer is set to expire on January 21, though the company has the option to extend the deadline.
Market reaction was muted on Monday. Shares of Warner Bros. Discovery fell 1.5 percent in early trading, while Netflix rose 0.8 per cent and Paramount edged up 0.3 percent.
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Paramount Skydance has sharply escalated its bid to wrest control of Warner Bros. Discovery, filing a lawsuit on January 12 seeking more detailed disclosures on the media giant’s rival $82.7 billion deal with Netflix and signaling an imminent proxy fight.
The David Ellison-led company said it plans to nominate directors to Warner Bros. Discovery’s board at the 2026 annual meeting, one of its most aggressive moves yet to persuade shareholders that its hostile $30-per-share all-cash offer is superior to Netflix’s $27.75-per-share cash-and-stock proposal.
The legal action deepens a high-stakes battle between Paramount Skydance and Netflix for Warner Bros. Discovery’s prized film and television assets, including its vast content library featuring franchises such as Harry Potter and the DC Comics universe.
In a letter to shareholders, Paramount said it would also propose amendments to Warner Bros. Discovery’s bylaws that would require shareholder approval for any separation of the company’s cable television business — a key component of the Netflix transaction.
The lawsuit comes less than a week after Warner Bros. Discovery’s board once again urged shareholders to reject Paramount’s latest revised bid.
“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 said in the letter dated January 12.
Ellison also informed shareholders that Paramount intends to nominate directors to Warner Bros. Discovery’s board, adding a proxy contest to what has already become one of Hollywood’s most contentious takeover battles in years.
Warner Bros. Discovery last month agreed to sell its streaming and studio businesses to Netflix for $72 billion, following a sale process in which Paramount had been bidding for the company’s full portfolio, including its cable TV assets grouped under Discovery Global.
Under the Netflix agreement, Warner Bros. Discovery plans to spin off Discovery Global into a separate publicly traded company — a move Paramount has repeatedly criticized. Last week, Paramount said the cable spinoff was “virtually worthless” and reiterated its amended $108.4 billion bid after another rejection from the Warner Bros. board.
That amended offer included $40 billion in equity personally guaranteed by Oracle co-founder Larry Ellison, the father of Paramount CEO David Ellison, along with $54 billion in debt financing.
Paramount’s tender offer is set to expire on January 21, though the company has the option to extend the deadline.
Market reaction was muted on Monday. Shares of Warner Bros. Discovery fell 1.5 percent in early trading, while Netflix rose 0.8 per cent and Paramount edged up 0.3 percent.
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