"David Ellison's Paramount Skydance just suffered another setback, this time in its legal fight with Warner Bros. Discovery. A Delaware judge ruled against Paramount, which had sued WBD in hopes of getting a court order forcing its acquisition target to quickly release information about how the company valued its cable networks. The value of WBD's cable TV networks is a key difference between Paramount's and Netflix's rival bids."
"Paramount has made eight offers to buy WBD, which have been rejected by WBD's board of directors in favor of its Netflix deal. However, Paramount still thinks its all-cash, $30-per-share offer for all of WBD, including its cable networks like CNN, is superior to Netflix's cash-and-stock bid of $27.75 per share for WBD's studio and HBO assets. Since Netflix does not want to buy WBD's cable TV networks, their value could determine whether WBD shareholders choose Paramount's rival, hostile bid."
Paramount Skydance sued Warner Bros. Discovery seeking a court order to force disclosure of how WBD valued its cable TV networks. A Delaware Court of Chancery judge denied Paramount's motion for summary judgment and expedited discovery, finding that Paramount had not shown it would suffer cognizable irreparable harm without expedition. The value of WBD's cable networks, which Netflix does not want to acquire, distinguishes Paramount's all-cash $30-per-share offer from Netflix's $27.75 cash-and-stock bid focusing on studios and HBO. Paramount has made eight offers that WBD's board rejected in favor of the Netflix transaction. Both companies issued statements contesting the ruling and their positions.
Read at Business Insider
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