Paramount sues Warner Bros. Discovery over its deal with Netflix

David Ellison’s Paramount has sued Warner Bros. Discovery — the smaller firm’s latest determination to artifact Warner’s merchantability to Netflix.

The lawsuit, filed Monday greeting successful Delaware court, asks Warner and its main enforcement David Zaslav to nutrient much accusation astir the events starring up to the Warner auction that culminated Dec. 4. Last week, Warner’s committee unanimously rejected Paramount’s $30-a-share connection that included a idiosyncratic warrant by Ellison’s father, the tech billionaire Larry Ellison.

The determination came the greeting aft the Golden Globes ceremonial successful Beverly Hills, successful which Zaslav’s lukewarm relations with Ted Sarandos, Netflix’s co-chief executive, were connected display. Both Warner Bros. Discovery and Netflix had a beardown nighttime astatine the grant show, which was televised by Paramount’s CBS network.

In a Monday missive to shareholders, David Ellison wrote that Warner has “provided progressively caller reasons for avoiding a transaction with Paramount.”

“Paramount started this process astir 4 months agone with a backstage connection astatine a important premium to WBD’s $12.54 stock price, and our pursuit culminated successful the $30 per stock all-cash, afloat financed connection we made earlier WBD entered into the Netflix transaction,” Ellison wrote.

“We are committed to seeing our tender connection through,” Ellison said. “We understand, however, that unless the WBD committee of directors decides to workout its close to prosecute with america nether the Netflix merger statement ... this volition apt travel down to your ballot astatine a shareholder meeting.”