Paramount Skydance said on Monday it has filed a lawsuit against Warner Bros Discovery (WBD) as it continues to pursue an unsolicited bid to acquire the media group that owns CNN.
The lawsuit seeks to compel the WBD board to disclose additional information to shareholders, which Paramount Skydance argues would allow investors to better assess and compare its offer with a rival bid backed by Netflix.
The legal action, filed in the Delaware Court of Chancery, follows a letter sent to WBD shareholders by Paramount Skydance chief executive David Ellison and marks the latest development in a takeover contest that has stretched on for several months.
Warner Bros Discovery announced in late October that it was open to acquisition offers. The company’s board later accepted a proposal from streaming giant Netflix, while formally rejecting Paramount Skydance’s offer for the entire company.
Under the Netflix-backed deal, WBD’s television assets — including CNN and Discovery — would not be part of the acquisition. Those properties would instead be spun off into a newly created, publicly traded company named Global Networks if the transaction is completed.
Paramount Skydance has accused the WBD board of failing to provide shareholders with sufficient details to make an informed comparison between the two competing proposals.
“We are committed to seeing our tender offer through,” Ellison said in the letter to shareholders.
He added: “If WBD calls a special meeting ahead of its annual meeting to vote on the Netflix Agreement, Paramount will solicit proxies against such approval.”
Paramount Skydance has also said it plans to seek the election of several representatives to the WBD board at the company’s annual meeting, a move aimed at strengthening its position in the takeover dispute.
The Delaware Court of Chancery, where the suit was filed, is a specialised court that handles corporate and financial litigation.
