Delaware judge won't speed up Paramount lawsuit seeking Warner Bros merger details

Jan 15 (Reuters) - A Delaware judge on Thursday rejected Paramount Skydance’s (PSKY.O) bid to expedite its lawsuit demanding more information from Warner Bros Discovery (WBD.O) about how that company decided Netflix’s (NFLX.O) proposed $82.7 billion takeover was better than its own $108.7 billion hostile bid. The decision was issued by Vice Chancellor Morgan Zurn of the Delaware Chancery Court. Paramount wanted the court to fast-track the case so Warner Bros shareholders could have access to financial details necessary to decide whether to accept its $30 per share all-cash tender offer, rather than Netflix’s lower cash-and-stock offer for its studio and streaming business, before it expires on January 21. Warner Bros called Paramount’s request premature and said it plans to disclose the financials when it solicits shareholder approval for the Netflix takeover. No vote has been scheduled. The lawsuit is part of David Ellison-led Paramount’s effort to ratchet up pressure on Warner Bros, which operates film and television studios and has an extensive content library that includes Harry Potter and DC Comics. Paramount said on Monday it also planned to nominate directors to Warner Bros’ board, to push that body to “engage in negotiations with Paramount for the stockholders’ benefit.” It also said it would propose changing Warner Bros’ bylaws to require shareholder approval to break off that company’s cable TV business, including channels such as CNN and Food Network, as it had planned. Warner Bros rejected Paramount’s takeover offer on January 7 and urged shareholders to approve the Netflix takeover. Paramount’s own businesses include CBS, MTV and Nickelodeon, as well as Paramount Pictures. In its motion to expedite, Paramount said “time is of the essence,” and the number of tendered shares would be a factor in whether to extend the tender offer. “Full and complete disclosure allows stockholders to leave the sidelines and make fully informed decisions about tendering their shares and exercising their rights,” it said. Warner Bros countered that the urgency was Paramount’s own creation, and Paramount’s motion should be deferred until after the proxy for the “premium, value-maximizing” Netflix merger is filed. “Any proceedings here should be crafted in view of the dynamic at play: a would-be hostile acquirer seeking to use this court as its backdoor into the boardroom to peer over the shoulders of directors during a live contest for control,” Warner Bros said.