Paramount fails to win fast-track order in Warner Bros Discovery merger-disclosure lawsuit

New Delhi: A Delaware judge has refused to fast-track Paramount Skydance’s lawsuit seeking more disclosures from Warner Bros Discovery, in a legal fight that sits alongside competing takeover bids for the media group. 

Vice Chancellor Morgan Zurn of the Delaware Chancery Court said Paramount did not show “cognizable irreparable harm” from what it called inadequate disclosures about Warner Bros’ cable TV business, which is not part of Netflix’s proposed deal. 

Paramount Skydance is challenging Warner Bros’ conclusion that Netflix’s proposed $82.7 billion cash-and-stock takeover offer is superior to Paramount’s hostile $108.7 billion all-cash bid. 

Paramount had asked the court to speed up the case so Warner Bros shareholders could weigh its $30-per-share tender offer before it expires on January 21. Warner Bros said the request was premature and that it plans to provide financials when it seeks shareholder approval for the Netflix transaction. 

No shareholder vote has been scheduled. Paramount is expected to extend its tender offer. Warner Bros rejected Paramount’s takeover proposal on January 7, the report said. 

Paramount said it will keep pressing Warner Bros for better disclosures, while Warner Bros called the lawsuit an attempt to distract. Netflix did not immediately respond to requests for comment. 

The lawsuit is part of Paramount’s broader pressure campaign. The company has said it plans to nominate directors to Warner Bros’ board and push for negotiations. It has also proposed changes to Warner Bros’ bylaws to require shareholder approval for any break-up of the cable TV business, including channels such as CNN and Food Network.