Warner Bros. rejects Paramount’s takeover bid
(NBC, KYMA) - Warner Bros. Discovery's board of directors has once again unanimously recommended to shareholders that they reject a hostile takeover offer from Paramount Skydance.
The board concluded that the Paramount bid is "inferior" to a previously announced deal with Netflix to buy Warner Bros. Discovery's studio and streaming business for $72 billion.
The board made their recommendation despite the guarantee of backing for the Paramount offer by billionaire Larry Ellison, who is the father of Paramount Skydance CEO David Ellison, which was a point of contention in Paramount's initial bid to buy Warner Bros.
That means Netflix is again in the lead to acquire the valuable company, along with all of its coveted assets.
Paramount has not responded to the announcement Wednesday while Netflix issued a statement welcoming the decision.
As it stands, Paramount can either walk away, raise its bid, or demand a vote from Warner Bros. Discovery shareholders.
However, one key difference in the offers is Paramount wants to buy Warner Bros. Discovery in its entirety.
The Netflix deal would allow the company to split as previously planned, and it would not get most of the former turner broadcasting or discovery cable networks.
