Warner Bros has once again rebuffed a takeover attempt from Paramount, advising its shareholders on Wednesday to instead back a competing offer from Netflix.
The entertainment giant's leadership has consistently rejected overtures from Skydance-owned Paramount, having previously urged shareholders weeks ago to support the sale of its streaming and studio operations to Netflix for $72bn.
Paramount, meanwhile, has sought to enhance its $77.9 bn hostile bid for the entire company.
Warner Bros. Discovery confirmed that its board concluded Paramount’s proposal does not serve the best interests of the company or its shareholders, failing to meet the standard of a superior offer. The board continues to recommend the Netflix agreement.
The competing bids present distinct visions.
Netflix’s proposed acquisition focuses solely on Warner’s studio and streaming operations, encompassing its legacy TV and film production arms and platforms like HBO Max.
Conversely, Paramount aims to acquire the entire company, which includes prominent networks such as CNN and Discovery, beyond just the studio and streaming divisions.
Should the Netflix deal proceed, Warner’s news and cable operations would be spun off into a separate entity, as previously announced. Both potential mergers are expected to attract considerable antitrust scrutiny, likely triggering a review by the US Justice Department and potentially facing challenges from international regulators.
What the deal means for the future of film and TV is still up for debate if Netflix, a service that bridged the gap between the big and small screen back in 2013, becomes a Hollywood conglomerate rivalling Disney.
Should the deal be pushed through, Netflix will own not just its own properties – from Stranger Things to Squid Game – but Harry Potter and the entirety of the DC Studios output.
After Netflix’s bid was made public, Paramount Skydance made a $108.4bn hostile takeover counteroffer. In December, Warner Bros Discovery urged shareholders to reject Paramount’s offer, branding it “inadequate” over financing concerns.
Paramount, which is controlled by the billionaire Ellison family, made a cash bid for the entire company, which also includes CNN news.
