Paramount goes to court against Warner Bros. Discovery. He demands that the details of the contract with Netflix be disclosed

Paramount Skydance asked the court to force Warner Bros. Discovery to disclose details regarding the company's sale process and the agreement to acquire it by Netflix. The company's CEO, David Ellison, also announced that he intends to nominate his candidates for members of the WBD management board.

Ellison announced the filing in a Delaware court in a letter to WBD shareholders on Monday. He noted that Warner Bros. Discovery – which Paramount is trying to acquire in a hostile takeover – refused to provide information about the agreement to sell part of the company to Netflix. This includes: about the method of valuation of the entire transaction, as well as the valuation of the part of the company that will remain in the hands of the current owners, including television channels, including TVN.

The letter is published after the WBD management board once again rejected Paramount's alternative offer to Netflix to acquire the company.

Warning about the decline in the value of television

According to Paramount, the remaining part of WBD – Discovery – will be worth very little given the financial problems of traditional television. Therefore, Ellison's company believes that their offer to take over the entire WBD, including television, is better for shareholders than Netflix's offer.

A plan to replace the management board and a game for billions

In the letter, Ellison also announced that during this year's general meeting of WBD Paramount, he would propose candidates for members of the company's management board, which is a new element of the hostile takeover attempt, bypassing the current management board.

Warner Bros. Discovery last month agreed to sell the streaming and film studios portion of the company to Netflix for $82.7 billion. Paramount submitted an offer valued at PLN 108.4 billion for the entire company. Paramount has hinted that it may increase the value of the offering, but has not yet done so.

From Washington Oskar Górzyński (PAP)

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