Paramount Files Lawsuit Against Warner Bros. Discovery Over Its Push for Netflix Deal
The Warner Bros. Discovery (WBD) drama continued this week as Paramount filed a lawsuit on Jan. 13, 2026, challenging Netflix’s planned acquisition of WBD after its hostile takeover bid.
Written by Jackie Leavitt (Editor at Large)
Reviewed by Aleksander Hougen (Chief Editor)
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Paramount’s lawsuit seeks to force WBD to disclose how the company valued aspects of the Netflix deal, with Paramount arguing that its offer wasn’t given fair consideration or negotiation.
Netflix agreed to buy the WBD streaming and movie businesses in December for $82.7 billion, equating to $27.72 per share ($23.25 in cash plus Netflix stock). Paramount’s hostile takeover bid is $108.4 billion for all of WBD, equating to $30 per share.
Last week the WBD board voted to reject Paramount’s hostile bid and advocated for shareholders to move forward with the Netflix deal. WBD shareholders have until Jan. 21 to tender shares under the Paramount offer.
Paramount CEO David Ellison informed WBD shareholders of the lawsuit, saying that “WBD never responded to our December 4th offer, never attempted to clarify or negotiate any of the terms in that proposal, nor traded markups of contracts with us,” and that moving forward with the Netflix deal “just doesn’t add up – much like the math on how WBD continues to favor taking less than our $30 per share all-cash offer for its shareholders.”
Paramount also plans to nominate board directors in three weeks at WBD’s annual shareholder meeting, in the effort to elect nominees who will fight the Netflix deal. The company plans to propose that WBD change its bylaws so its shareholders have to approve a WBD cable channel spinoff.
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