Warner Bros. Discovery Inc.’s board of directors said early Wednesday that its members had unanimously recommended that shareholders reject Paramount Skydance’s bid for the company in favor of Netflix’s earlier offer.
“After careful evaluation of Paramount’s recently launched public offering, the board concluded that the value of the offering is inadequate, with significant risks and costs imposed on our shareholders,” Samuel A. Di Piazza, Jr., chairman of the board, said in a statement.
Warner Bros. shares fell about 1.3% in early trading, while Netflix shares rose about 1.7%. Paramount shares lost about 2.2% in early trading.
General views of the Warner Brothers studio on December 13, 2023 in Burbank, California.
AaronP/Bauer-Griffin/GC Images via Getty Images
The Warner Bros. board of directors said in a press release that Netflix’s offer amounted to a “superior” offer and added that it represented “more secure value for our shareholders.” Meanwhile, Paramount’s offer “provides inadequate value and imposes numerous significant risks and costs on WBD,” the board said.
Netflix in its own statement said it welcomed the Warner Bros. board’s recommendation, and co-CEO Ted Sarandos described the negotiations as a “competitive process that delivered the best outcome for consumers, creators, shareholders and the entertainment industry as a whole.”
“The Warner Bros. Discovery board of directors reinforced that the Netflix merger agreement is superior and that our acquisition is in the best interest of shareholders,” Sarandos said in a statement.
This is a developing story. Please check back for updates.
