Paramount Skydance has sued Warner Bros. Discovery as part of its latest attempt to acquire the studio.
Paramount Skydance is asking the court to force Warner Bros. Discovery to provide information about its $82.7 billion deal with Netflix, as reported by Variety.
"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 Skydance chairman and CEO David Ellison wrote in an open letter to WBD shareholders.
Ellison also notified WBD shareholders of a plan to engage in a proxy fight by nominating directors "who, in accordance with their fiduciary duties, will exercise WBD's right under the Netflix Agreement to engage on Paramount’s offer and enter into a transaction with Paramount."
This latest move comes after Paramount Skydance launched a $77.9 billion hostile takeover bid to acquire WBD last month, which placed the value of the company at $30 per share, as opposed to $27.75 per share with Netflix.
Warner Bros. Discovery rejected Paramount's takeover bid, and urged its shareholders to do the same, while also calling the Netflix deal "superior." WBD raised concerns about the funding of Paramount's proposal, citing documents that "contain gaps, loopholes, and limitations that put you, our shareholders, and our company at risk."
Paramount later attempted to improve its proposal with the backing of Larry Ellison, father of David Ellison, who guaranteed $40.4 billion of the equity behind the company's takeover bid.
According to CNN, Larry's commitment represents one-sixth of his $250 billion net worth.
Charles Gasparino of the New York Post reported last week that Paramount Skydance has grown frustrated with meeting every one of WBD's demands, only to face rejection. According to Gasparino, Paramount executives floated the idea of taking legal action, and challenging the handling of the bidding process.