Paramount Skydance Corporation filed a lawsuit in the Delaware Court of Chancery on January 12, 2026, seeking to compel Warner Bros. Discovery (WBD) to disclose detailed information about its $82.7 billion merger with Netflix. The suit requests that WBD reveal how it values its Global Networks unit, the impact of the debt transfer on the transaction, and the basis for the “risk adjustment” applied to Paramount’s $30‑per‑share offer.
The merger, valued at $82.7 billion in enterprise terms and $72 billion in equity terms, pits Paramount’s all‑cash bid against Netflix’s cash‑and‑stock proposal, which values WBD at $27.75 per share. WBD’s board has recommended shareholders reject Paramount’s offer and support the Netflix agreement, citing financing concerns and perceived value gaps. Paramount argues that the Global Networks unit, which will be spun off as Discovery Global, has little to no value—potentially negative due to leverage—and that the debt transfer and risk adjustment are designed to inflate the offer’s attractiveness.
Paramount’s lawsuit is part of a broader strategy to pressure WBD into reconsidering the Netflix deal. The company has secured an irrevocable personal guarantee from Larry Ellison for the equity portion of its financing, covering $40.4 billion, and has highlighted the high debt load that would accompany a Paramount takeover. By demanding transparency on the Global Networks valuation, Paramount seeks to demonstrate that the Netflix offer delivers superior value and to undermine the board’s recommendation to reject its bid.
The legal escalation signals a turning point in the media consolidation race. If Paramount succeeds in obtaining the requested disclosures, it could weaken the case for the Netflix merger and shift the balance of power in the shareholder vote. Conversely, a failure to secure the information would reinforce WBD’s position and potentially accelerate the completion of the Netflix transaction. The outcome will have significant implications for the streaming and linear television markets, as well.
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