Paramount sues Warner Bros. Discovery, alleging mismanagement and seeking a hostile takeover.

Paramount has filed a lawsuit in Delaware Chancery Court seeking a hostile takeover of Warner Bros. Discovery, accusing WBD’s leadership of underperforming and failing to maximize shareholder value. CEO David Ellison claims WBD’s management has hindered strategic alternatives, including a potential merger with Paramount, and has breached fiduciary duties. The legal move marks a major escalation in ongoing tensions, with Paramount also threatening a proxy fight to replace WBD’s board. The case, which will examine corporate governance and shareholder rights, could reshape the U.S. entertainment industry.