17.12.2025 21:11
The Warner Bros board of directors advised shareholders to prefer Netflix's offer over Paramount Skydance's acquisition bid. In a statement made by the company early Wednesday, it was noted that the decision was made unanimously.
Warner Bros. is preparing to reject Paramount's $108.4 billion acquisition offer. The company management argued that Netflix's $82 billion offer is strategically more advantageous and urged shareholders to say "no" to the Paramount offer.
The board of directors announced that Paramount's recent acquisition attempt was thoroughly evaluated, but it was concluded that the offer did not provide sufficient value for shareholders.
"INCLUDES SIGNIFICANT RISKS AND COSTS"
Chairman Samuel A. Di Piazza Jr. stated in a press release: "We carefully examined Paramount's bid. The Board concluded that the value of the offer is inadequate and carries significant risks and additional costs for our shareholders."
The Warner Bros. board described Netflix's offer as "superior" in a press release, emphasizing that this offer provides a more definite and sustainable value for shareholders.
MARKETS RESPONDED QUICKLY TO THE DECISION
Following the decision, there was volatility in the markets.
Warner Bros. Discovery shares fell about 1.3% in early trading, while Netflix shares rose about 1.7%. Paramount shares lost approximately 2.2% in value.
NETFLIX: "THE BEST OUTCOME-DRIVEN PROCESS"
In a statement from Netflix, it was noted that the Warner Bros. board's recommendation was welcomed. Netflix Co-CEO Ted Sarandos evaluated the process with the following words:
"This has been a competitive process that has yielded the best outcome for consumers, content creators, shareholders, and the broader entertainment industry."
Sarandos also stated, "The Warner Bros. Discovery Board confirmed that Netflix's merger agreement is superior and that this acquisition is the most suitable option for shareholders."
ALL EYES ON SHAREHOLDERS
Despite the board's strong recommendation, it was noted that the final decision would be shaped by the votes of the shareholders, with comments suggesting that this move could change the dynamics in the media and entertainment sector in the long term.