Paramount goes on the attack: the company is trying to disrupt Warner Bros' deal with Netflix

Paramount Skydance has announced its intention to nominate its own candidates to the board of directors of Warner Bros Discovery (WBD) in order to block the approval of the $82.7bn deal with Netflix. This was reported by The Guardian.

According to a letter to WBD investors, Paramount plans to nominate an alternative slate of directors at the annual shareholders' meeting, which is usually held in June. In addition, the company has filed a lawsuit demanding disclosure of financial information regarding the valuation of WBD's assets, including its global network business (CNN, Cartoon Network, Discovery Channel), which is not part of the Netflix deal.

Under the terms of the agreement, Netflix will gain control over key assets of Warner Bros Discovery, including the Warner Bros studio and the HBO platform. Paramount insists that its own offer - a $108.4bn takeover of WBD - is more beneficial for shareholders, as it includes a $30 per share cash payment and the retention of the network business.

Paramount CEO David Ellison said the company is ready to fight for the shareholders' decision even if an extraordinary meeting is called, as well as to initiate changes to the WBD charter that will require mandatory approval of the business split by shareholders.

The board of directors of Warner Bros Discovery has previously twice called on investors to reject Paramount's offer, calling it «inadequate» and risky due to the record level of debt financing. At the same time, WBD's withdrawal from the deal with Netflix comes with a $2.8bn fine, making it difficult to change course.

Warner, Netflix, Paramount, CNN, Cartoon Network, Discovery Channel