Judge rejects Paramount’s request to expedite case against Warner Bros.

by

Paramount experienced a setback on Thursday when a Delaware judge denied their request to speed up the legal process in their case against Warner Bros. Discovery. The lawsuit aims to obtain details about internal discussions and financial assessments within Warner Bros. Discovery.

During a court hearing, Delaware Chancery Court Vice Chancellor Morgan T. Zurn stated that Paramount didn’t demonstrate it would face significant and unavoidable damage if it didn’t receive the financial information it requested, according to Reuters.

Paramount now needs to convince Warner shareholders to accept their offer before the deadline next week. Investors have until Wednesday to sell their shares to Paramount for $30 each, but Paramount could choose to give them more time.

Paramount filed a lawsuit Monday, arguing that investors deserve to know how Warner Bros. Discovery’s board members assessed the value of its assets when deciding to sell to Netflix, and that this information hasn’t been shared.

Paramount asked the judge to speed up the legal process, hoping to quickly reach out to Warner Bros. shareholders.

Hollywood Inc.

David Ellison, the Chairman of Paramount, has criticized Warner Bros. for repeatedly finding new excuses to avoid merging with Paramount.

David Ellison’s company maintains that its $108 billion offer, which includes taking on Warner’s debt, is more valuable to Warner shareholders than the offer Netflix made on December 4th, a combination of cash and stock. That evening, Warner’s board of directors concluded the bidding process and chose Netflix as the winning bidder.

Netflix’s stock has dropped around 17% since the beginning of December, and the company is now considering making a full cash offer to buy Warner Bros., including its movie and TV studio, HBO, and the HBO Max streaming service. Netflix has not confirmed these reports.

Paramount is looking to acquire Warner Bros. Discovery, which would include popular networks like CNN and its other cable channels.

Warner Bros. Discovery responded to Paramount Skydance’s lawsuit on Thursday, calling it a frivolous effort to divert attention, and stating the judge clearly recognized it as such.

Warner Bros. Discovery welcomed a Delaware court’s decision supporting their position and dismissing claims that the lawsuit required special consideration or had significant problems. The company also stated that, despite repeated attempts, Paramount Skydance hasn’t offered a deal that the board believes is better than the existing agreement with Netflix.

Hollywood Inc.

Larry Ellison, a major figure in the tech world, attempted to buy Warner Bros. Discovery, but Netflix won the deal. This has led to a potential legal battle that could significantly impact the future of the entertainment industry.

Paramount dismissed the recent ruling, stating it doesn’t affect the core of their argument.

Paramount stated that Warner shareholders have a right to know how Warner’s board determined the value of its cable channels, so they can properly compare the different offers on the table.

Netflix is opposing Warner Bros.’ plan to separate its cable channels into a new company this summer. Warner shareholders would receive stock in the new entity, which is currently known as Discovery Global.

Paramount is questioning why Warner Bros. Discovery’s board seems to be concealing this information. They are again asking Warner Bros. Discovery to be transparent so that its shareholders can make well-informed choices.

Read More

2026-01-15 20:32