Warner Bros. Discovery (WBD) said Monday that Paramount Skydance’s (PSKY) lawsuit against it, in which the company is demanding information about Netflix’ s takeover bid for it, is without merit.
WBD responded to the lawsuit, filed in Delaware Chancery Court, noting that after six weeks of talks PSKY has not improved its own offer “or addressed the numerous and obvious deficiencies” it has.
PSKY “seeks to distract with a baseless lawsuit and attacks on a board of directors that has generated unprecedented shareholder value,” the communication further states, according to Variety magazine.
“Despite its multiple opportunities, Paramount Skydance continues to propose a transaction that our board of directors unanimously concluded is not superior to the merger agreement with Netflix,” he adds.
In a letter sent Monday to WBD shareholders, PSKY CEO David Ellison reported the lawsuit, asking the court to “order WBD to provide this information so that shareholders have what they need to make an informed decision on whether or not to accept our offer.”
The lawsuit comes less than a week after WBD’s board of directors again recommended that shareholders reject Paramount’s latest amended offer of $30 per share.
WBD agreed to sell its streaming and studio business to Netflix for $72 billion, and soon after Paramount made a hostile takeover bid.
Paramount’s lawsuit, which names several WBD board members as defendants, seeks to compel the company to disclose how it is valuing its Discovery Global unit within the Netflix deal, including the amount of debt WBD will offload to Discovery Global.
These are crucial details in assessing the overall shareholder value of the Netflix deal versus Paramount’s offer, according to Paramount, Variety further notes.
After evaluating offers from Paramount, Comcast and Netflix, WBD’s board of directors opted to close a deal with Netflix, reported Agencia EFE.
Find out more at ‘QueOnnda.com’.
