As previously reported by PWMania.com, Paramount attempted a hostile takeover bid in early December of last year, shortly after Netflix and Warner Bros. Discovery announced a deal for Netflix to acquire the network company. Warner Bros. Discovery (WBD) rejected Paramount’s initial hostile bid, as well as a subsequent updated offer made last week.
Paramount’s updated bid maintained a price of $30 per share and included a personal agreement from Larry Ellison to support the equity in the offer.
According to Deadline.com, Paramount Skydance filed a lawsuit in Delaware Chancery Court on Monday related to the WBD-Netflix acquisition deal. The lawsuit requests that WBD disclose how it values Netflix’s acquisition deal compared to Paramount’s offer. Additionally, it seeks to compel WBD to provide “basic information to enable WBD shareholders to make informed decisions” regarding whether to tender their shares in Paramount’s hostile takeover bid.
The report also noted that Paramount sent a letter to WBD shareholders on Monday to inform them of the lawsuit. In the letter, Paramount stated its intention to nominate its own candidates for WBD’s board of directors.
They intend to choose individuals who will fulfill their fiduciary duties and explore Paramount’s offer in accordance with WBD’s rights under the Netflix Agreement. Furthermore, Paramount plans to propose an amendment to Warner Bros. Discovery’s bylaws that would require shareholder approval for any separation of the Discovery Global networks. WBD is set to spin off its networks into a new company, while Paramount’s offer encompasses the entire company, including the networks.
Paramount’s offer stands at $30 per share, while Netflix’s deal is valued at $27.75 in cash plus some Netflix stock. WBD argues that the price difference is justified by the spinoff of Discovery Global. They also highlight various risks associated with the Paramount deal that are absent from the Netflix deal.
For wrestling fans, All Elite Wrestling (AEW) is an important consideration in this situation. AEW airs on TBS, TNT, and HBO Max.
Under the Netflix deal, TBS and TNT would be transferred to Discovery Global, while HBO Max would remain under Netflix’s ownership.
Regardless of developments, AEW’s situation will remain unchanged for the foreseeable future. Their contract with WBD is not expected to be affected until after the spin-off of Discovery Global, which is scheduled for the latter half of 2026.
AEW’s contract with WBD runs through 2027, with an option for WBD to extend it through 2028 if it chooses.
