Paramount sues Warner Bros. Discovery over Netflix deal

(CNN, KYMA) - After rejecting its latest takeover bid last week, Paramount Skydance is taking its pursuit of Warner Bros. Discovery to court.

David Ellison's media company is asking a Delaware court to force Warner Bros. Discovery to provide information about its deal with Netflix.

He's been trying to buy Warner Bros. for months, but the company's board of directors inked a deal with Netflix instead.

Now, Ellison is trying to gain control of Warner Bros. in a hostile takeover where Paramount buys a majority of its stock.

For that to work, a sufficient number of Warner Bros. shareholders would have to agree to sell. Right now, they're split on whether Paramount or Netflix is offering the better deal.

In response to the lawsuit, Warner Bros. has issued the following statement:

"Despite six weeks and just as many press releases from Paramount Skydance, it has yet to raise the price or address the numerous and obvious deficiencies of its offer. Instead, Paramount Skydance is seeking to distract with a meritless lawsuit and attacks on a board that has delivered an unprecedented amount of shareholder value. In spite of its multiple opportunities, Paramount Skydance continues to propose a transaction that our board unanimously concluded is not superior to the merger agreement with Netflix."

Prior to the announcement of the lawsuit, President Donald Trump posted to social media Sunday saying, "Stop the Netflix Cultural Takeover," with an article from One America News Network.

To learn more about the lawsuit, click here.