Warner Bros rejects Paramount bid, sticks with Netflix

Warner Bros.

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Discovery yesterday rejected a hostile takeover bid by Paramount launched last week to trump plans by streaming giant Netflix to acquire the Hollywood giant and owner of CNN.In a statement, Warner Bros said the terms of the Netflix merger were better, while the Paramount offer "once again fails to address key concerns that we have consistently communicated...throughout our extensive engagement and review of their six previous proposals. We are confident that our merger with Netflix represents superior, more certain value for our shareholders," it said.

Netflix shocked the industry on December 5 by announcing it had sealed an agreement to buy the film and television studio and HBO Max streaming business for nearly $83 billion, the entertainment industry's biggest consolidation deal this decade.

Three days later, Paramount -- whose CEO is David Ellison, the son of Larry Ellison, an ally of President Donald Trump -- launched an all-cash tender offer valuing the entertainment giant at $108.4 billion.