The battle for control of media titan Warner Bros Discovery (WBD) has intensified dramatically, with Paramount Skydance launching a legal offensive to advance its hostile takeover attempt. The entertainment conglomerate, which owns Paramount Pictures and CBS, has filed a lawsuit seeking to compel WBD to release crucial financial details to its shareholders.
Legal Action and Shareholder Pressure
Paramount Skydance's lawsuit, filed on Monday 12 January 2026, aims to force WBD to disclose how it values two competing offers: the bid from Paramount Skydance itself and a rival $82.7bn (£61.4bn) proposal from streaming giant Netflix. The Netflix deal, agreed by the WBD board in early December, involves selling its TV studios and rights to major franchises like Harry Potter and Game of Thrones.
In an open letter, Paramount Skydance's chairman and CEO, David Ellison, argued it is customary for such disclosures to be made when a board makes an investment recommendation. The company has also threatened to nominate its own directors at WBD's upcoming annual meeting in an effort to sway the board's stance.
A Clash of Corporate Titans
The WBD board has unanimously recommended shareholders accept the Netflix proposal and reject the offer from Paramount Skydance. However, Mr Ellison, son of billionaire Larry Ellison, contends his company's offer is "simply more" than Netflix's. He expressed frustration that WBD never responded to their initial approach on 4 December or attempted to negotiate.
Paramount Skydance is further attempting to complicate the proposed Netflix deal by proposing a change to WBD's bylaws. This change would require shareholder approval before spinning off the streaming portion of the business—a move that includes HBO, HBO Max, Warner Bros' production units, and DC Studios.
High Stakes for the Future of Media
The outcome of this corporate struggle carries enormous consequences. A successful merger between WBD and either Paramount Skydance or Netflix would rank among the biggest media deals in history, with profound impacts on television, film production, and the cinematic experience.
Key implications include:
- Cinema's Future: Netflix has shown scepticism towards traditional theatrical releases, often opting for short cinema runs or direct-to-streaming premieres. Its ownership of major film studios could accelerate this trend.
- News Concentration: If Paramount Skydance succeeds, it would control both CNN and CBS News, raising significant concerns about media plurality and the concentration of major news outlets.
- Market Reaction: Following the latest developments, WBD's shares fell by roughly 2%, while Paramount Skydance's stock rose 0.5%.
WBD has dismissed Paramount Skydance's actions. A spokesperson stated the bidder had not improved its offer but was instead "seeking to distract with a meritless lawsuit" against a board that had delivered substantial shareholder value.
