Warner Bros. Rejects Paramount Offer

Warner Bros. Discovery's board of directors has unanimously recommended shareholders reject a hostile $108-billion takeover bid from Paramount Skydance and advised them to back a previously agreed deal with Netflix instead.

Netflix struck an $83-billion takeover of Warner Bros. Discovery's TV and film studios in early December in a deal handing one of Hollywood's most prized assets to the streaming giant, before Paramount Skydance tabled a rival offer.

The pair had been in an auction with Comcast before Warner Bros. Discovery (WBD) opted to go for Netflix's cash and stock deal valued at $27.75 per WBD share, resulting in a total enterprise value of around $82.7 billion and an estimated equity value of $72 billion.