Paramount Skydance has sued Warner Bros. Discovery in the latest move in hopes of taking over the for-sale media empire.
Paramount CEO David Ellison outlined his reasoning for the lawsuit in a letter to Warner Bros. Discovery shareholders on Monday morning.
He’s seeking information on why the company’s board continues to assert that the deal presented by Netflix is superior to the one continually proposed by his organization.
“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.
“We filed suit this morning in Delaware Chancery Court to ask the court to simply direct WBD to provide this information so that WBD shareholders have what they need to be able to make an informed decision as to whether to tender their shares into our offer.”
The letter comes days after the board at Warner Bros. Discovery rebuffed another bid by Paramount Skydance to acquire the company. Paramount has made the same offer — $30 per share, all-cash — that WBD has rejected. The company then added a personal guarantee from Larry Ellison — David Ellison’s father — to back the offer.
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