The boardroom drama in Hollywood has become a full-fledged blockbuster. Paramount Skydance has taken legal action against Warner Bros. Discovery, demanding that the studio disclose the financial particulars of its enormous deal with Netflix, and it is shaking up the media industry.Paramount filed a suit in the Delaware Chancery Court in early January 2026. Although it is a hostile takeover bid, pressure is the actual aim. Paramount desires WBD to share the estimated valuation of its Netflix deal, particularly the way the board computed the value of its cable networks and the way it managed the company's debt. Paramount states that this information is crucial since, without it, shareholders cannot make a fair judgment about which offer is more suitable.This is not simply legal formalities but a major power game. Paramount asserts that its all-cash bid is more transparent and less risky than Netflix’s combination of stock and cash. Meanwhile, Paramount is about to nominate its own directors and initiate a full proxy battle to gain control over Warner’s board.What Paramount is asking forThe most important request Paramount makes at the court is to compel Warner Bros. to provide clear and detailed financial information concerning its Netflix deal. The crux of the lawsuit is as follows: the shareholders of Warner lack sufficient information to make an informed decision.In particular, Paramount desires disaggregations of the valuation of key divisions of Warner, in particular, its Global Networks business (CNN, Discovery, TNT, etc.), and information regarding the implications of the debt-related adjustments made by Netflix on the actual value of their acquisition. David Ellison, CEO and chairman at Paramount, wrote in an open letter to WBD shareholders:"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."The economic reasoning Warner’s board used to decide the Netflix deal was better than Paramount’s $30-per-share all-cash offer, which includes buying all of Warner’s assets. Paramount contends that the absence of this kind of data is asking investors to vote on a deal without being aware of which one is more valuable. That is a large issue with corporate governance.Why is this a big deal? Because it is not only about the numbers but also about who holds significant Hollywood Studios, it is important to be as open as it can be to shareholders about the dynamics of power in the streaming age. When Paramount is informed of this, they would be able to transform the opinion of investors, scrutinize regulators, and possibly redefine the future of entertainment.More than a lawsuit View this post on Instagram Instagram PostParamount is not going about this quietly. In addition to its lawsuit, it is preparing for a broad proxy contest to put its own slate of nominees on the board of Warner Bros. Discovery, a direct takeover attack.However, Warner Bros. Discovery is holding firm in this situation. Its board of directors also supports the merger deal with Netflix and thinks that it is less precarious compared to Paramount’s deal. The Netflix deal, worth approximately $82.7 billion, is set to be partially in cash and stocks, despite facing issues of regulation, but it seems safer compared to Paramount’s deal, which consists of debt.As the deadline approaches regarding the tender offer from Paramount, financing promises support from the billionaire investors, and the public outreach effort targets investors directly, this is more than an ongoing battle in the courtroom. This is an integrated battle at the corporate level to reshape power in the entertainment industry.For more such insights, keep following SoapCentral.