Entertainment giant Warner Bros. Discovery (WBD) has again rejected a takeover offer from rival Paramount Skydance (PSKY) in favor of a bid from streaming giant Netflix (NFLX).
Warner Bros. Discovery’s board of directors unanimously recommended that shareholders reject a hostile takeover offer from Paramount Skydance.
The board said it continues to believe that the Paramount’s bid is “inferior” to a previously announced offer from Netflix to buy Warner Bros’ streaming business for $72 billion U.S.
Paramount’s hostile bid offers $30 U.S. per share for all of Warner Bros. Discovery, including its legacy television networks that include CNN, HBO, and the Food Network.
In December, Paramount guaranteed the backing of billionaire Larry Ellison, the father of Paramount Skydance CEO David Ellison, to try and win approval from Warner Bros.’ board.
Paramount Skydance has now made a total of three takeover offers for Warner Bros. Discovery, all of which have been rejected.
Separate from the takeover drama, Warner Bros. Discovery has announced plans to split into two separate companies by mid-2026.
One company will focus on streaming and studios and will be called Warner Bros. The other will focus on the TV networks and be named Discovery Global.
Netflix issued a statement welcoming the Warner Bros. board’s recommendation and saying that it is has been engaging with regulators in the U.S. and Europe on antitrust concerns.
WBD stock has risen 170% over the past year, mostly due to the takeover battle. The company’s shares currently trade at $28.47 U.S.
