Warner Bros rejects Paramount's bid, backs Netflix amid takeover battle

HBO owner says Paramount's offer not in shareholders’ interests

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Warner Bros. Discovery (WBD) has rejected a hostile takeover bid from Paramount Skydance, siding instead with a previously agreed deal with streaming giant Netflix and escalating one of the most closely watched media consolidation battles in years.

In a statement issued yesterday, Warner Bros. said its board of directors had unanimously determined that Paramount Skydance’s tender offer “is not in the best interests of WBD and its shareholders” and does not qualify as a “Superior Proposal” under the merger agreement signed with Netflix on December 5. The board urged shareholders to reject the Paramount bid, citing greater certainty and long-term value in the Netflix transaction.

Paramount Skydance went public with its hostile offer last week after failing to persuade Warner’s leadership to abandon the Netflix deal through private negotiations. The competing bids place Warner Bros. — owner of HBO, Warner Bros. Studios, CNN and Discovery — at the centre of a takeover fight with far-reaching implications for film production, streaming markets and US news media.

Competing bids

Paramount is offering $30 per Warner share, topping Netflix’s agreed price of $27.75 per share.