Paramount sues Warner Bros over Netflix merger
Paramount has filed a lawsuit against Warner Bros Discovery, demanding details about Warner Bros’ planned $82.7 billion merger with Netflix. The move marks a major escalation in Paramount’s aggressive campaign to acquire the iconic Hollywood studio.
Paramount, led by David Ellison, is offering $108.7 billion in all-cash to buy Warner Bros, which it claims is better than Netflix’s cash-and-stock proposal. Warner Bros owns valuable entertainment properties including Harry Potter and DC Comics characters, making it a prize target for both companies.
Warner Bros rejected Paramount’s latest offer last week and told shareholders to support the Netflix deal instead. In response, Paramount filed the lawsuit in Delaware court seeking financial documents that explain why Warner Bros’ board favours the Netflix merger. The company also plans to nominate its own directors to Warner Bros’ board.
Paramount argues its $30-per-share all-cash offer is superior to Netflix’s $27.75-per-share mixed offer and would face fewer regulatory obstacles. The company is also proposing changes to Warner Bros’ rules that would require shareholder approval before separating the cable TV business, a key part of Netflix’s plan.
Warner Bros faces $4.7 billion in costs if it abandons the Netflix deal, including a $2.8 billion termination fee. The company called Paramount’s lawsuit “meritless” and said Paramount hasn’t addressed problems with its offer or increased the price. Paramount’s tender offer expires January 21 but can be extended.
For all latest news, follow The Daily Star's Google News channel.
Comments