Los angeles: Paramount Skydance on Monday filed a lawsuit against Warner Bros. Discovery (WBD) in a Delaware court, challenging WBD's recent deal with Netflix. This legal action represents Paramount Skydance's ongoing strategy to assert control over the Hollywood media giant.

According to Namibia Press Agency, the lawsuit aims to compel WBD and its Chief Executive Officer, David Zaslav, to provide more detailed information regarding the company's impending agreement with Netflix. This move follows WBD's rejection of Paramount Skydance's revised tender offer, which the company claims does not measure up to Netflix's merger agreement in several critical areas.

WBD's board of directors has unanimously declared that Paramount Skydance's tender offer, revised on December 22, 2025, is not beneficial for WBD and its shareholders. In response, David Ellison, CEO of Paramount Skydance, addressed WBD shareholders in a letter, outlining his company's plan to present a fully financed, all-cash offer of 30 U.S. dollars per share.

Paramount Skydance emphasizes the need for basic information disclosure to allow WBD shareholders to make an informed choice. The company also plans to nominate directors at WBD's 2026 Annual Meeting and campaign against the Netflix transaction's approval.

The lucrative deal with Netflix, valued at 82.7 billion U.S. dollars, was announced on December 5, sending ripples through Hollywood. The merger, a cash-and-stock transaction, is pegged at 27.75 dollars per share. Paramount Skydance's counteroffer of 30 dollars per share challenges Netflix's proposal, arguing that it offers "inferior and uncertain value."

While the Netflix agreement includes WBD's film studio and streaming service, along with plans to spin off its cable division into a separate public entity, Paramount Skydance's proposal encompasses the entire WBD corporation.