Paramount is suing Warner Bros. Amid the controversial Netflix merger

As two major streaming platforms gear up – Warner Bros. and Netflix – to merge Concerns are still being expressed about the implications of the deal, which represents further consolidation in the media space.

Paramount CEO David Ellison announced Monday that the company has filed a lawsuit against Warner Bros. Discovery (WBD) in Delaware, seeking more financial disclosure in connection with its $82.7 billion acquisition of Netflix.

In a letter to shareholders, Ellison disclosed that the lawsuit was filed in Delaware Court of Chancery, requiring WBD to provide key information it allegedly failed to share. Ellison argues that shareholders need accurate information to evaluate whether to accept rival Paramount’s offer of $30 a share in cash, which he claims is better than the Netflix deal.

“WBD has increasingly given new reasons to avoid a deal with Paramount, but what it never says, because it can’t, is that the Netflix deal is financially superior to our actual offer,” Ellison wrote.

Ellison added: “Along with WBD shareholders, we have requested the usual financial disclosure that the board is supposed to provide to shareholders when making an investment recommendation… WBD has failed to include any disclosure on how it evaluates the overall Netflix transaction, how the purchase price reduction for debt in the Netflix transaction will work, or even what the ‘risk adjustment’ basis for our all-cash offer of $30 per share is. WBD shareholders need this information to make an informed investment decision about our offer.”

Last week, WBD’s board rejected Paramount’s latest offer again, saying there was a significant risk the deal would fall through.

President Trump also expressed his dissatisfaction with the merger. Over the weekend, Trump shared on Truth Social an opinion piece by John Pearce titled “Stop Cultural Appropriation on Netflix,” published in One America News last month. Pearce believes that if Netflix acquires Warner Bros. Broadcast and studio assets, it would establish itself as “the most dominant cultural gatekeeper the United States—and much of the world—has ever seen.”

After meeting with Netflix co-CEO Ted Sarandos in December, Trump indicated that the merger “could be a problem,” given Netflix’s already large market share, which would expand significantly with the acquisition.

The industry also reacted generally negatively to the acquisition, raising concerns about the implications for jobs, the future of theatrical releases, and the representation of diverse voices in film and television.

Netflix co-CEOs Greg Peters and Sarandos attempted to address these concerns in a letter last month. However, the Writers Guild of America (WGA) continues to oppose the takeover, citing violations of antitrust law. Lawmakers, including Senators Elizabeth Warren, Bernie Sanders and Richard Blumenthal, warn that the merger could raise consumer costs, exacerbating financial pressures on middle-class families, especially after Netflix’s recent price hikes.