Paramount Reportedly Loses Bid To Fast-Track Warner Bros Suit: PSKY Stock Edges Lower

• Paramount sued Warner Bros. Discovery on Monday for information, alleging that the WBD board made erroneous disclosures about the merger deal struck with Netflix.
• The company stated that WBD shareholders should have the information they need in order to make an informed decision as to whether to tender their shares to Paramount.
• The David Ellison-led company has approached Warner Bros. with multiple offers since October, eventually culminating in the $30 per share all-cash bid in December.

Paramount Skydance Corp. (PSKY) on Thursday reportedly lost its bid to fast-track the suit filed against Warner Bros. Discovery Inc. (WBD).

According to a Bloomberg report, Delaware Chancery Court Judge Morgan Zurn did not find that Paramount’s request met the requirements for expediting the hearing.

Paramount sued Warner Bros. Discovery on Monday for information, alleging that the WBD board made erroneous disclosures about the merger deal struck with Netflix Inc. (NFLX).

Paramount Skydance shares edged lower by 0.5% in Thursday morning’s trade, while Warner Bros. Discovery shares gained 0.7%. Retail sentiment on Stocktwits around PSKY trended in the ‘bearish’ territory, while users felt ‘extremely bearish’ about WBD.

Netflix shares were up 1% at the time of writing, with retail sentiment trending in the ‘extremely bullish’ territory on Stocktwits.

What Paramount Wants

While filing its suit for information, Paramount stated that WBD shareholders should have the information they need in order to make an informed decision as to whether to tender their shares to the David Ellison-led company.

Paramount has approached Warner Bros. with multiple offers since October, eventually culminating in the $30 per share all-cash bid in December. However, WBD’s board has turned down Paramount’s offers and chose to go with Netflix’s offer of $27.75 per share in a cash-and-stock deal.

“Our goal remains to have constructive discussions with WBD's Board to reach an agreement that is in the best interests of WBD shareholders,” the company said.

What Did Paramount Offer?

Paramount’s offer valued Warner Bros. Discovery at $108.4 billion, including the company’s debt, as well as cable TV networks such as CNN, the Discovery Channel, and TNT.

In contrast, Netflix’s offer valued WBD at an enterprise value of $82.7 billion, but excluded the spinoff company.

However, according to a report on Tuesday, Netflix is said to have discussed making its offer all cash for Warner Bros’ studios and streaming businesses.

PSKY stock is down 10% year-to-date, WBD stock is down 0.3%, while NFLX stock has declined 5%.

Also See: Penumbra Shares Are Rising Today — What Is The Boston Scientific Agreement?

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