Paramount Skydance Corp. said, it plans to nominate directors to the board of Warner Bros. Discovery Inc. to vote against the approval of a merger with Netflix. Paramount has filed a suit to force Warner to disclose information to help its shareholders make an informed decision.
In a letter sent to Warner Bros. investors on January 12, Paramount said, it was sticking to its offer of $30 a share and encouraged shareholders to tender their shares. “We are committed to seeing our tender offer through,” the letter said, adding, “We understand, however, that unless the WBD board of directors decides to exercise its right to engage with us under the Netflix merger agreement, this will likely come down to your vote at a shareholder meeting.”
Paramount accused Warner Bros. of failing to disclose how it valued the cable TV assets which the company plans to spin off before selling the studios and streaming business to Netflix, and also took issue with other details relating to the transaction. Paramount, run by David Ellison, considers its offer superior to Netflix’s $27.75 a share offer for the studios and streaming business.