Warner Bros. Discovery Inc.’s board of directors said early Wednesday that its members had unanimously recommended that shareholders reject Paramount Skydance’s bid for the company in favor of Netflix’s earlier offer.
“After careful evaluation of Paramount’s recently launched public offering, the board concluded that the value of the offering is inadequate, with significant risks and costs imposed on our shareholders,” Samuel A. Di Piazza, Jr., chairman of the board, said in a statement.
General views of the Warner Brothers studio on December 13, 2023 in Burbank, California.
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Warner Bros. shares fell about 1.5% in early trading, almost mirroring the 1.6% rise in Netflix shares before the market opened.
The Warner Bros. board of directors said in a press release that Netflix’s offer amounted to a “superior” offer, saying it represented “more secure value for our shareholders.” Meanwhile, Paramount’s offer “provides inadequate value and imposes numerous significant risks and costs on WBD,” the board said.
This is a developing story. Please check back for updates.
