Warner Bros. Discovery recommends that shareholders oppose the takeover offer from Paramount Skydance

Warner Bros. Discovery has instructed its investors to oppose the $108.4 billion acquisition bid from Paramount Skydance.

On its official site, the company's directors concluded that the bid "does not serve the best interests of WBD or its shareholders."

Following another analysis, Warner Bros. Discovery assessed that the offer from Paramount Skydance "is not as beneficial as the merger with Netflix," stating that its concerns, which have been shared in past interactions, remain unaddressed in Paramount's proposal.

The Board stated, "The Netflix merger terms are superior. The offer from PSKY lacks sufficient value and introduces significant risks for WBD," further emphasizing, "The shareholder value promised through the Netflix merger is remarkable."

It was also noted, "PSKY has falsely advised WBD shareholders regarding a 'full backstop' insurance from the Ellison family, which does not and never has existed."

Warner Bros. Discovery Board Chair, Samuel A. Di Piazza, Jr., mentioned, "After thorough review, we find Paramount's offer lacking in value, coupled with numerous risks for our stakeholders."

He added, "Our ongoing dialogue has repeatedly identified these shortcomings in Paramount's proposals. We are certain that partnering with Netflix delivers unparalleled value for our shareholders, and we anticipate realizing the synergies from this union."

On the other side, Ted Sarandos, Netflix's co-CEO, responded positively to the board's confirmation, remarking: "Netflix's merger plan stands out as superior, benefiting all parties involved, including shareholders."

"This rigorous process secured optimal results for everyone—from consumers to the entertainment sector at large. The union of Netflix and Warner Bros. promises enriched value, combining theatrical and TV production with the esteemed HBO brand."

He also affirmed their commitment to traditional cinematic releases for Warner Bros.' films, ensuring audiences have big-screen experiences.

Recently, Netflix revealed its plan to acquire Warner Bros. and its games division for $82.7 billion, shortly before Paramount Skydance initiated a hostile takeover bid for Warner Bros. Discovery.

Discover more in our article, What does the Netflix deal mean for Warner Bros's games division?