Warner Bros. in Crossover Drama: Netflix vs. Paramount

Warner Bros. urges shareholders to reject a takeover bid from Paramount Skydance, promoting a more favorable offer from Netflix. The merger with Netflix promises enhanced consumer choices, creative audience expansion, and growth. Paramount's competing offer includes Warner's cable operations, with shareholder decision pending.

Warner Bros. has advised its shareholders to turn down a takeover bid from Paramount Skydance, touting an alternative proposal from streaming giant Netflix as more beneficial for consumers. The company stated that a collaboration with Netflix would enhance consumer options and bring greater value by expanding audience reach for creative content.

The Warner Bros. board emphasized that joining forces with Netflix would not duplicate their existing offerings but rather complement them, leveraging Netflix's expansive library and iconic franchises for long-term growth. They believe Netflix's proposal offers a strategic advantage for the studio's future.

Despite the Warner Bros. board's preference, Paramount's bid remains an option. Shareholders can opt for Paramount's offer, which includes acquiring Warner's cable units such as CNN and Discovery, whereas Netflix's proposal excludes these assets. The Netflix acquisition awaits regulatory approvals and Warner's cable division separation.

(With inputs from agencies.)