U.S. Court Rejects Paramount's Request for Swift Disclosure of Warner-Netflix Contract Information

Paramount Skydance (hereinafter referred to as Paramount) had its lawsuit demanding immediate disclosure of the merger contract between Warner Bros. Discovery (hereinafter referred to as Warner Bros.) and Netflix rejected by the court.

⬦ Delaware Court "No Irreparable Harm"... Paramount's Request Denied

According to major foreign media outlets such as Bloomberg and The Wall Street Journal on the 15th local time, Judge Morgan Jern of the Delaware court stated that he denied Paramount's request for expedited processing of the lawsuit filed against Warner Bros.

In his ruling, Judge Jern pointed out that Paramount failed to sufficiently prove that it would suffer legally recognized irreparable harm due to Warner Bros.' insufficient disclosure of information. The judge also added that there are other ways for Paramount to obtain the relevant information.

Paramount was the first company to enter the bidding for the acquisition of Warner Bros. last year. However, when the Warner Bros. board chose a deal with Netflix as a result of competitive bidding, Paramount declared a hostile takeover and initiated a public stock purchase targeting Warner Bros. shareholders.

Subsequently, Paramount submitted a revised proposal that supplemented its funding plan for the acquisition, but it was rejected again by the Warner Bros. board. In response, Paramount filed a lawsuit on the 12th demanding immediate disclosure of key information related to the acquisition price calculation method for the deal with Netflix.

⬦ Paramount "It's Not Over Yet"... Public Purchase Extension vs. Netflix, Solidifying with 'All-Cash'

Following the court ruling, Paramount stated in a press release that it would continue to demand information disclosure from Warner Bros., urging Warner Bros. shareholders to question why the board is making such efforts to hide this information.

Paramount also announced plans to extend the deadline for the public stock purchase of Warner Bros. beyond the 21st.

Meanwhile, Netflix is reportedly preparing to convert its acquisition of Warner Bros.' studio and streaming division into an all-cash deal. The original agreement between the two companies included some stock transactions.

The Wall Street Journal analyzed that Netflix's move could help expedite the completion of the deal and secure the support of Warner Bros. shareholders.