Paramount Skydance has filed a lawsuit in Delaware against Warner Bros. Discovery (WBD) to block its planned $82.7 billion breakup and sale to Netflix. The lawsuit seeks to force WBD to disclose detailed financial valuations for its Global Networks stub equity and the basis for its risk adjustments.

Paramount CEO David Ellison argues the board failed to negotiate his firm's superior $108.4 billion, $30-per-share all-cash offer. WBD maintains that Paramount's proposal requires too much debt financing and exposes shareholders to significant risk. The company recently rejected Paramount's bid, favoring the stability of Netflix's 'A' rated credit.

Paramount is now aggressively courting WBD shareholders ahead of a January 21 deadline, threatening to nominate opposing board directors at the upcoming annual meeting. The battle for media consolidation intensifies as Ellison leverages his father Larry Ellison's financial backing to challenge the Netflix agreement.