Warner Bros. Rejects Paramount's Hostile Takeover Bid; Netflix Deal in Spotlight

Warner Bros. urged shareholders to reject Paramount Skydance's $30 takeover bid, favoring Netflix's $27.75 offer for customer benefits. Both bids require shareholder and regulatory approval. Paramount’s acquisition includes Warner's cable operations, while Netflix excludes them. Critics highlight regulatory concerns over market dominance and industry impact.

Warner Bros. has advised its shareholders to dismiss Paramount Skydance's aggressive takeover bid, advocating instead for a proposal from Netflix, which the board believes will better serve customers.

The board scrutinized Paramount's latest unsolicited offer with the same meticulous approach it had employed for previous proposals, emphasizing its fiduciary responsibilities.

Paramount, offering $30 per share, isn't entirely off the table, even though the deal backed by Warner Bros. board is with Netflix at $27.75 per share—a deal that excludes Warner's cable operations.

However, if Paramount succeeds, it could integrate major networks like CBS and CNN, raising editorial control concerns.

Both deals, subject to shareholder consent and regulatory evaluation, have sparked debates on their potential effects on market control and industry consolidation, while receiving commentary from U.S. President Donald Trump.

(With inputs from agencies.)