Why Paramount is Suing Warner Bros. Discovery to Reveal Secret Netflix Deal Terms

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Paramount Skydance has officially sued Warner Bros. Discovery to reveal hidden financial details of a rival Netflix deal, intensifying a $108 billion hostile takeover. The lawsuit filed on 12 January 2026 demands transparency among shareholders who must choose between two massive offers.

Paramount is offering all cash, while Netflix has a complex cash-and-stock proposal. This legal move marks a major escalation as Paramount launches a proxy fight to seize control of the iconic studio.

The Details of the $108 Billion Hostile Takeover


The fight revolves around how much Warner Bros. Discovery (WBD) is really worth. In December 2025, WBD’s board favored an $82.7 billion deal with Netflix. This plan promised to handover movie studios and HBO to Netflix. It would also spin off old cable channels into a new company called ‘Discovery Global.’ However, Paramount CEO David Ellison says these cable channels are nearly worthless. He claims the board is hiding the truth from investors. 

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Paramount filed this lawsuit to reveal the secret math behind the deal. The company wants to understand the internal value of channels like CNN and TNT. The media company believes its $30-per-share cash bid is much better for shareholders.

How Will the Paramount-Warner Lawsuit Affect Your Streaming Bill?

The legal battle will eventually change what you pay for TV. If Netflix wins, it will control over 30% of the streaming market. Experts say this might lead to higher monthly prices. Popular movies like Harry Potter would likely vanish from other apps. You would have to pay for a more expensive Netflix plan to see them. This ‘content silo’ makes streaming more costly for families.

If Paramount wins, two of the biggest movie studios will merge, and they might limit large-scale movies for the theaters. However, the new company would have almost $90 billion in debt. To repay this, the media house might stop making original or experimental shows; instead, it might focus on safe sequels. Either way, the days of cheap streaming will come to an end.

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