Paramount to nominate directors and sues Warner Bros. Discovery over Netflix deal

Paramount on Monday escalated its hostile bid for Warner Bros. Discovery, saying it would nominate directors to the company’s board and filing a lawsuit demanding more information about how Warner Bros. decided that Netflix’s bid was superior. The Warner board last week rebuffed Paramount’s $108 billion offer and stuck with a plan to sell a large portion of the business to Netflix for $83 billion.

Paramount said its proposed nominees would “exercise WBD’s right under the Netflix Agreement to engage on Paramount’s offer and enter into a transaction with Paramount.” It also said it would propose a bylaw amendment requiring Warner Bros. Discovery to obtain shareholder approval before breaking off its cable unit.

Paramount has accused the Warner board of running a sales process that unfairly favored Netflix, while Warner Bros. Discovery has argued Netflix’s bid is better for shareholders partly because of the heavy debt Paramount would impose. A spokesperson for Warner Bros. Discovery did not immediately respond to a request for comment.

The Warner board is led by Samuel A. Di Piazza Jr., who joined in 2022 when AT&T combined its WarnerMedia business with Discovery.

Key Topics

Business, Paramount, Warner Bros. Discovery, Netflix, Samuel Di Piazza, David Ellison