⁠Why is Paramount suing Warner Bros.? Lawsuit explored after Discovery rejected Skydance's bid

Photo Illustrations Of The Netflix/Paramount Battle For The Acquisition Of Warner Bros. - Source: Getty
Paramount and Warner Bros. logos appear in a photo illustration taken in Creteil, France on December 10, 2025. (Image via Getty/Samuel Boivin)

Paramount Skydance has launched a lawsuit against Warner Bros. amid allegations that its Netflix transaction undervalues the company.

EuroNews has reported that Paramount Skydance has doubled down on its hostile takeover of Warner Bros Discovery, reportedly informing shareholders that it will nominate directors to the WBD board and fight its merger with Netflix. The company is also considering legal action to promote increased transparency surrounding the deal.

The move reportedly comes on the heels of months-long spats between the media juggernauts over what is one of Hollywood's most renowned groups. Shareholders are now faced with an all-cash offer from Paramount and a merger proposal from Netflix.


Paramount Skydance's hostile takeover of Warner Bros. explored:

PBS reported just last week that Warner Bros. rejected another takeover bid from Paramount and also told its shareholders on Wednesday to continue with the offer from Netflix of $72 billion. Paramount, on the other hand, has offered $77.9 billion for the whole company.

Warner Bros. Discovery reportedly said on Wednesday that its board has determined that the offer from Paramount is not in the best interest of its company or shareholders, asserting that Netflix's offer is more enticing.

"Paramount's offer continues to provide insufficient value, including terms such as an extraordinary amount of debt financing that create risks to close and lack of protections for our shareholders if a transaction is not completed," Warner Bros. Discovery Chair Samuel Di Piazza Jr. said in a statement. He added that the company's agreement with Netflix "will offer superior value at greater levels of certainty."

In a press release, the company said, per EuroNews:

“Over the last few days, following the decision by Warner Bros. Discovery (‘WBD’) not to engage with Paramount on our $30 per share cash offer to acquire all of WBD… we keep getting the same question: what happens next?” It continues, "Paramount will propose an amendment to WBD's bylaws to require WBD shareholder approval for any separation of Global Networks... to ensure that you get the final decision on which offer is better for you."

The company has also revealed that it plans to nominate a panel of directors at its annual meeting this year, and, if it is deemed necessary, solicit votes against the approval of the merger with Netflix.

ABC News has reported that Paramount Skydance has also filed a suit in Delaware Chancery Court in a bid to force Warner Bros. to disclose to its shareholders how it values its bid, as well as the competing offer from Netflix.

As of this writing, WBD has yet to schedule the annual meeting to weigh its options, ABC News has reported, and Paramount has not yet named any of its potential candidates for the board.


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Edited by Jenel Treza Albuquerque