Paramount Skydance (NASDAQ:PSKY) escalated its hostile pursuit of Warner Bros. Discovery (NYSE:WBD) on Monday, filing a lawsuit in Delaware to force the disclosure of financial details surrounding Netflix's (NASDAQ:NFLX) $82.7 billion rival bid.
The move marks a dramatic attempt by Paramount CEO David Ellison to dismantle a deal that would create the world’s most powerful cultural gatekeeper.
The lawsuit, filed in the Delaware Court of Chancery, alleges that WBD’s board breached its fiduciary duties by failing to provide "customary financial disclosure" to shareholders.
Ellison argues that WBD has ignored his superior all-cash offer of $30 per share—personally guaranteed by his father, Oracle co-founder Larry Ellison—in favor of a "financially inferior" cash-and-stock deal from Netflix.
"WBD has provided increasingly novel reasons for avoiding a transaction with Paramount," Ellison wrote in a letter to shareholders Monday morning.
"What it has never said, because it cannot, is that the Netflix transaction is financially superior to our actual offer."
The merger battle has spilled into the political arena, drawing sharp criticism from President Donald Trump.
Over the weekend, Trump signaled on Truth Social that a Netflix takeover of Warner’s storied film and TV studios could pose a significant antitrust and cultural "problem."
The President’s concerns mirror an opinion piece by attorney John Pierce, who warned of a "Netflix cultural takeover" that would give the streamer unprecedented control over American media.
On the other side of the aisle, Democratic Senators Elizabeth Warren, Bernie Sanders, and Richard Blumenthal have called for an "unbiased" Department of Justice review.
The lawmakers warned that further consolidation could lead to higher subscription prices and fewer choices for middle-class families already squeezed by Netflix’s recent price hikes.
The creative community is also mobilizing against the deal.
The Writers Guild of America (WGA) formally opposed the acquisition on Monday, citing potential antitrust violations.
The union argued that the merger would lead to widespread layoffs, reduced wages, and a decrease in the diversity of content reaching screens.
Industry analysts estimate that a combined Netflix-Warner entity would control well over a third of the U.S. streaming market.
Under the current agreement, Netflix plans to acquire Warner’s studios and streaming assets (including HBO Max), while WBD’s legacy cable networks would be spun off into a separate company called "Discovery Global."
If the Netflix deal is scuttled, WBD would owe the streamer a $2.8 billion termination fee.
Paramount’s lawsuit seeks to prevent that outcome by giving shareholders the transparency needed to back Ellison’s higher bid before the January 21 tender deadline.