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Stock impact report

Paramount files lawsuit in pursuit of Warner Bros. Discovery and threatens proxy fight [CNN]

Warner Bros. Discovery, Inc. - Series A (WBD) 
Company Research Source: CNN
On Monday Paramount CEO David Ellison announced a lawsuit in Delaware Chancery Court, where shareholders typically bring corporate disputes, as it attempts a hostile takeover of the iconic entertainment company. Ellison criticized Warner Bros. Discovery, also known as WBD, for a “lack of transparency” around its decision to favor Netflix's bid for Warner Bros. and HBO. Ellison has been trying for months to buy all of WBD, but his entreaties have been rebuffed. WBD has been moving forward with its signed agreement to sell its Warner Bros. and HBO assets to Netflix for $27.75 per share, with $23.25 in cash and the rest in Netflix stock. So Ellison is trying to gain control of WBD by offering to buy up shares for $30 each, and he is also threatening a proxy fight, vowing to nominate a Paramount-friendly slate of board members to take over the WBD board. Those board members, he said, would “exercise WBD's right under the Netflix agreement to engage on Paramount's offer and ente Show less Read more
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