Warner Bros. board tells shareholders to reject Paramount offer in favor of Netflix

(NEW YORK) — The board at Warner Bros. Discovery Inc. said early on Wednesday that its members had unanimously recommended that shareholders reject Paramount Skydance’s bid for the company in favor of Netflix’s earlier bid.

“Following a careful evaluation of Paramount’s recently launched tender offer, the Board concluded that the offer’s value is inadequate, with significant risks and costs imposed on our shareholders,” Samuel A. Di Piazza, Jr., board chair, said in a statement.

Shares of Warner Bros. slipped about 1.5% in early trading, just about mirroring Netflix stock’s 1.6% climb prior to the market’s open. Paramount’s stock shed about 2.2% in early trading.

The Warner Bros. board said in a press release that the Netflix bid amounted to a “superior” offer, adding that it represented “more certain value for our shareholders.” Paramount’s offer, meanwhile, “provides inadequate value and imposes numerous, significant risks and costs on WBD,” the board said.

Netflix in its own statement said it welcomed the Warner Bros. board’s recommendation, with co-CEO Ted Sarandos describing the negotiations as a “competitive process that delivered the best outcome for consumers, creators, stockholders and the broader entertainment industry.:

“The Warner Bros. Discovery Board reinforced that Netflix’s merger agreement is superior and that our acquisition is in the best interest of stockholders,” Sarandos said in a statement.