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Paramount Sues WBD Over Netflix Deal, Declares Intention to Nominate Board Member to Solicit Against Approval

Paramount Sues WBD Over Netflix Deal, EscalatesDeclares TakeoverIntention Bidto Nominate Board Member to Solicit Against Approval

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Warner Bros. Discovery's board unanimously rejected Paramount's hostile takeover bid because the $30 all-cash offer isdelivers fundamentallysuperior inferiorvalue compared to Netflix's convoluted deal whenthat's accountingactually forworth massivejust costs and risks$27.42 Paramountper wouldshare saddlewhen WBDaccounting withfor overNetflix's $50declining billionstock inprice newand debta inGlobal whatNetworks amountsspinoff towith thezero largestequity leveragedvalue. buyoutWarner inBros. history,Discovery's creatingboard arefuses junk-ratedto companydisclose withbasic 7xfinancial leverageinformation thatabout couldhow easilyit collapsevalued during the 12-18Netflix monthtransaction closingor period.the Thedebt realmechanics, valueviolating ofDelaware Paramount'slaw offerrequiring plummetstransparent toshareholder just $28disclosures.21 perThe shareboard afternever factoringgenuinely inengaged thewith $2.8Paramount's billionoffer, Netflixholding terminationfew fee,actual $1.5meetings billionbefore debtrushing exchangeinto penaltyan andinferior $350Netflix milliondeal inwithout extraever interestnegotiating coststerms thator WBDtrading shareholderscontract would bearmarkups.

Warner Bros. Discovery's board unanimously rejected Paramount's hostile takeover bid because the $30 all-cash offer deliversis superiorfundamentally valueinferior compared to Netflix's convoluted deal that'swhen actuallyaccounting worthfor justmassive $27costs and risks.42 perParamount sharewould whensaddle accountingWBD forwith Netflix'sover declining$50 stockbillion pricein andnew adebt Globalin Networkswhat spinoffamounts withto zerothe equitylargest value.leveraged Warnerbuyout Bros.in Discovery'shistory, boardcreating refusesa tojunk-rated disclosecompany basicwith financial7x informationleverage aboutthat howcould iteasily valuedcollapse during the Netflix12-18 transactionmonth orclosing theperiod. debtThe mechanics,real violatingvalue Delawareof lawParamount's requiringoffer transparentplummets shareholderto disclosuresjust $28.21 Theper boardshare neverafter genuinelyfactoring engagedin withthe Paramount's$2.8 offer,billion holdingNetflix fewtermination actualfee, meetings$1.5 beforebillion rushingdebt intoexchange anpenalty inferiorand Netflix$350 dealmillion withoutin everextra negotiatinginterest termscosts orthat tradingWBD contractshareholders markupswould bear.

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All rights reserved.

Version 6.18.0