Paramount Files Lawsuit Against Warner Bros. Amid Controversial Netflix Merger

As two major streaming companies — Warner Bros. Discovery and Netflix — move closer to a proposed merger, debate is intensifying over what the deal could mean for competition and consolidation in the media industry.

On Monday, Paramount CEO David Ellison announced that the company had filed a lawsuit against Warner Bros. Discovery in Delaware. The lawsuit seeks greater financial transparency related to Netflix’s proposed $82.7 billion acquisition.

In a letter to shareholders, Ellison said the suit was filed in the Delaware Chancery Court and accuses Warner Bros. Discovery of failing to provide key financial disclosures. According to Ellison, shareholders lack the information needed to evaluate Paramount’s competing $ 30-per-share cash offer, which he says is financially superior to Netflix’s bid.

“WBD has provided increasingly novel reasons for avoiding a transaction with Paramount, but what it has never said, because it cannot, is that the Netflix transaction is financially superior to our actual offer,” Ellison wrote.

He added that both Paramount and WBD shareholders have requested standard financial disclosures that typically accompany a board’s investment recommendation. Ellison claims Warner Bros. Discovery has not explained how it valued the Netflix transaction, how debt-related price adjustments would work, or how it calculated its risk adjustment for Paramount’s all-cash offer.

“WBD shareholders need this information to make an informed investment decision on our offer,” Ellison said.

The lawsuit follows Warner Bros. Discovery’s decision last week to reject Paramount’s latest bid once again, citing concerns that the deal carried too much execution risk.

The proposed Netflix–Warner Bros. Discovery merger has also drawn political attention. Over the weekend, Donald Trump shared an opinion article on Truth Social titled “Stop the Netflix Cultural Takeover,” written by John Pierce and published by One America News. The article argues that a Netflix acquisition of Warner Bros.’ streaming and studio assets would make Netflix an unprecedented cultural gatekeeper.

After meeting with Netflix co-CEO Ted Sarandos in December, Trump suggested the merger “could be a problem,” citing Netflix’s already dominant market position.

Industry reaction to the acquisition has been largely adverse. Critics have raised concerns about potential job losses, the future of theatrical film releases, and diminished diversity in film and television content.

Netflix co-CEOs Greg Peters and Sarandos attempted to address these concerns in a letter last month. However, opposition remains strong. The Writers Guild of America continues to oppose the merger, citing potential antitrust violations.

Lawmakers, including Elizabeth Warren, Bernie Sanders, and Richard Blumenthal, have also warned that the deal could raise consumer costs and place additional financial pressure on middle-class households, particularly given Netflix’s recent subscription price increases.