Paramount sues Warner Bros Discovery for the Netflix deal information

Paramount Skydance has filed a lawsuit against Warner Bros. Discovery (WBD) after WBD's board of directors repeatedly rejected the company's 'uninvited' takeover bid. So, what should you know about it?

An ongoing battle between Paramount and Netflix

For your information, the suit seeks to force WBD's board of directors to disclose more details about the acquisition agreement by Netflix to shareholders, which it claims could make Paramount's offer look more attractive. The move was accompanied by a letter from Paramount Skydance CEO David Ellison to WBD shareholders, and is the latest development in a conflict that has been going on for months.

At the end of October last year, WBD announced it was open to takeover offers, and its board of directors later accepted a bid from streaming giant Netflix. Netflix's board-backed bid does not include the purchase of WBD's television assets, such as CNN and Discovery. If the deal is completed, these assets will be owned by a new publicly listed company called Global Networks.

Moreover, Paramount accused WBD's board of directors of failing to provide shareholders with sufficient information to compare its offer to Netflix's bid fairly. Now, the company has said it will seek to appoint several representatives to WBD's board of directors ahead of its annual shareholder meeting, to strengthen its position.

Stay tuned to TechNave.com for more updates.