M&A: Warner Bros. Discovery recommends investors reject Paramount’s hostile takeover bid.
The company’s board said in a statement that it determined the Paramount Skydance offer “is not in the best interests of WBD and its shareholders.”
The Warner Bros. board’s recommendation to shareholders effectively means Paramount’s offer is dead. Paramount could, however, return with a higher offer.
“This offer once again fails to address key concerns that we have consistently communicated to Paramount throughout our extensive engagement and review of their six previous proposals,” WBD’s chair, Samuel Di Piazza, said.
Warner Bros. Discovery said it was instead sticking with its initially announced deal to sell its studio, HBO, and HBO Max to Netflix. “The terms of the Netflix merger are superior,” WBD said in a letter to shareholders.
Sad end for a storied studio.
