Paramount Skydance‘s hostile takeover effort of Warner Bros. Discovery has taken a new legal turn.
David Ellison‘s Paramount Skydance on Monday sued Warner Bros. Discovery, seeking to force WBD to disclose financial details of its $83 billion deal with Netflix.
“WBD has failed to include any disclosure about how it valued the Global Networks stub equity, how it valued the overall Netflix transaction, how the purchase price reduction for debt works in the Netflix transaction, or even what the basis is for its ‘risk adjustment’ of our $30 per share all-cash offer,” Paramount chairman and CEO David Ellison wrote in an open letter to WBD shareholders Monday.
Paramount on Monday filed suit in Delaware Chancery Court to ask the court “to simply direct WBD to provide this information so that WBD shareholders have what they need to be able to make an informed decision as to whether to tender their shares into our offer,” Ellison wrote.
A WBD rep did not immediately respond to a request for comment.