Paramount is suing Warner Bros. Amid the controversial Netflix merger

As two major platforms for live broadcasting —Warner Bros. and Netflix– Preparing for the merger, concerns are still being expressed about Repercussions of the dealwhich represents further consolidation in the media field.

Paramount CEO David Ellison announced Monday that the company has filed a lawsuit against Warner Bros. Discovery (WBD) in Delaware, seeking more financial disclosure in connection with its $82.7 billion acquisition of Netflix.

in Message to shareholders, Ellison revealed that the lawsuit was filed in Delaware Chancery Court, requiring WBD to provide basic information it allegedly failed to share. Ellison argues that shareholders need accurate information to evaluate whether to accept rival Paramount’s offer of $30 a share in cash, which he claims is better than the Netflix deal.

“WBD has increasingly given new reasons to avoid a deal with Paramount, but what it never says, because it can’t, is that the Netflix deal is financially superior to our actual offer,” Ellison wrote.

Ellison added: “Along with WBD shareholders, we requested the usual financial disclosure that a board is supposed to provide to shareholders when making an investment recommendation… WBD has failed to include any disclosure about how it evaluates the overall Netflix transaction, how the purchase price reduction for debt in the Netflix deal will work, or even what the ‘risk adjustment’ basis for our all-cash offer of $30 per share is. WBD shareholders need this information to make an informed investment decision about our offer.”

Last week, the WBD Board of Directors Paramount’s latest offer was rejected Again, saying there is too high a risk the deal will fail.

President Trump also expressed his dissatisfaction with the merger. Over the weekend, Trump participated Social truth Opinion piece by John Pearce entitled “Stop Cultural Appropriation on Netflix”, published in One America News last month. Pearce believes that if Netflix acquires Warner Bros. Live and studio assets, it would establish itself as “the most dominant cultural gatekeeper the United States — and much of the world — has ever seen.”

After meeting with Netflix co-CEO Ted Sarandos in December, Trump Shown That the merger “could be problematic”, given Netflix’s already large market share, which would expand significantly with the acquisition.

The industry also reacted generally negatively to the acquisition, raising concerns about the implications for jobs, the future of theatrical releases, and the representation of diverse voices in film and television.

Co-CEOs of Netflix Greg Peters and Sarandos I tried to address these concerns in a letter last month. However, the Writers Guild of America (WGA) continues to oppose the takeover, citing violations of antitrust law. Lawmakers, including Senators Elizabeth Warren, Bernie Sanders and Richard Blumenthal, warn that the merger could raise consumer costs, exacerbating financial pressures on middle-class families, especially after Netflix’s recent price hikes.