Warner Bros. Discovery rejects Paramount Skydance’s hostile bid, saying Netflix’s offer is superior

Warner Bros. Discovery on Wednesday urged shareholders to reject Paramount Skydance’s $108.4 billion hostile bid, arguing that it created “significant risks and costs” for the company and that Netflix’s prior offer provides better value.

The move follows competing bids for Warner Bros. Discovery, whose storied film library includes classics like “Casablanca” and the “Harry Potter” film series. Netflix agreed on December 5 to buy a part of Warner Bros. in a deal valued at $82.7 billion, while Paramount Skydance followed on Dec. 8 with an all-cash $30 per share for the entirety of the media conglomerate.

In making the bid for all of Warner Bros. Discovery, Paramount Skydance CEO David Ellison described it as a “superior all-cash offer.” Ellison said that combining the assets of Warner Bros. Discovery with Paramount Skydance (the parent of CBS News) would face an easier path through the government regulatory process.

A spokesperson for Paramount Skydance didn’t immediately respond to a request for comment. 

In recommending that shareholders reject Paramount Skydance’s bid, Warner Bros. Discovery said its board concluded the two offers pose an equal regulatory risk. Warner Bros. Discovery also said its analysis found that Netflix’s offer, which includes cash and Netflix stock, is superior. 

It also raised concerns about Paramount Skydance’s $40.65 billion equity commitment, for which Warner Bros. Discovery said “there is no Ellison family commitment of any kind.” David Ellison’s father, Oracle CEO Larry Ellison, is the world’s fifth-richest person, with a net worth of $243 billion, according to the Bloomberg Billionaires Index.

—This is breaking news and will be updated.