A Delaware Chancery Court judge has denied Paramount Skydance's request to expedite its lawsuit against Warner Bros. Discovery (WBD), rejecting the push to force WBD to disclose more details about its financial analysis and valuation behind its preferred merger deal with Netflix.
The ruling, issued Thursday by Vice Chancellor Morgan Zurn, found that Paramount failed to demonstrate it would suffer "irreparable harm" from the alleged lack of disclosures. The judge noted that Paramount, as a WBD shareholder pursuing its own hostile tender offer, is not directly harmed by WBD's disclosures since it isn't the one deciding whether to tender shares.
Paramount had argued urgency was needed ahead of its tender offer's January 21, 2026 expiration date, claiming fuller information would help WBD shareholders decide whether to accept Paramount's $30-per-share all-cash bid instead of supporting the Netflix transaction.
"WBD shareholders should ask why their Board is working so hard to hide this information," Paramount said, while continuing to urge shareholders to make informed decisions and positioning its bid as value-maximizing. The decision is a setback for Paramount's aggressive campaign to derail WBD's $82.7 billion agreement with Netflix, which involves selling WBD's studios and streaming assets (including Warner Bros., HBO, and Max) while spinning off the linear TV networks as Discovery Global in the third quarter of 2026.
WBD's board has repeatedly rejected Paramount's multiple offers—including the latest hostile tender—as inferior, citing higher risks, massive debt implications (potentially the largest leveraged buyout in history), and uncertainties compared to Netflix's deal with a stronger balance sheet.
Paramount has already filed the lawsuit seeking the disclosures and announced plans for a proxy fight, including nominating directors at WBD's 2026 annual meeting to push for engagement on its bid or bylaw changes requiring shareholder approval for the spinoff. WBD has dismissed the suit as "meritless" and an attempt to distract from its superior Netflix partnership.
The tender offer battle remains active, with low tender levels reported so far and Paramount's extension signaling continued pressure on WBD shareholders ahead of any potential vote on the Netflix merger.