The board of directors of Warner Bros. Discovery Inc. has unanimously recommended that shareholders reject the takeover proposal from Paramount Skydance and instead support the earlier offer submitted by Netflix, according to a statement released on Wednesday, reports Baltimore Chronicle.
In a letter addressed to shareholders, the board stated that after reviewing Paramount’s recently launched tender offer, it determined that the proposal does not adequately reflect the company’s value and would expose shareholders to substantial risks and additional costs. Samuel A. Di Piazza Jr., chair of the Warner Bros. Discovery board, said the decision followed a detailed assessment of the terms presented by Paramount.
The board emphasized that Netflix’s bid represents a superior alternative, describing it as offering more certainty and greater value for Warner Bros. Discovery shareholders. By contrast, Paramount’s proposal was characterized as insufficient in financial terms and burdened by multiple operational and strategic risks for the company.
Market reaction followed the announcement, with shares of Warner Bros. Discovery falling approximately 1.3% in early trading. During the same period, Netflix shares rose about 1.7%, while Paramount Global’s stock declined roughly 2.2%.
Netflix welcomed the board’s recommendation in a separate statement. Co-CEO Ted Sarandos said the process had been highly competitive and resulted in what he described as the strongest possible outcome for audiences, creative partners, investors and the broader entertainment sector. Sarandos added that the Warner Bros. Discovery board had reaffirmed that Netflix’s merger agreement is in the best interests of shareholders.
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