Warner Bros. Rejects ‘Inferior’ Paramount Hostile Takeover Bid, Chooses Netflix

Warner Bros. Discovery has formally rejected the hostile takeover bid from Paramount amid their merger deal with Netflix, dubbing the proposed terms “inferior” to the Netflix partnership.

“Your Board negotiated a merger with Netflix that maximizes value while mitigating downside risks, and we unanimously believe the Netflix merger is in your best interest. We are focused on advancing the Netflix merger to deliver its compelling value to you,” the board wrote in a letter to shareholders Wednesday morning, per Variety.

The letter further stated that the Paramount offer “is not more favorable to WBD stockholders than the Netflix Merger and continues to be inadequate,” because of “insufficient value, taking into account price and numerous risks, costs and uncertainties.” 

The decision to reject the bid was said to be unanimous. This was the sixth offer made and rejected by Paramount.

“The Offer is entirely at [Paramount]’s discretion – [Paramount] can reduce the price, impose new conditions, or walk away entirely at any time prior to its acceptance of tendered shares,” Warner Bros. said of the proposal.

Paramount announced their latest bid days after the Netflix deal was announced in December.

“We believe our offer will create a stronger Hollywood. It is in the best interests of the creative community, consumers and the movie theater industry,” Paramount Chairman and CEO David Ellison said in a statement at the time, as The Daily Wire previously reported. 

“We believe they will benefit from the enhanced competition, higher content spend and theatrical release output, and a greater number of movies in theaters as a result of our proposed transaction.”

President Trump remarked on the Netflix deal in December, saying it “could be a problem” from an antitrust standpoint. The president also mentioned being “involved” in reviewing the deal. The proposed merger has had bipartisan pushback from skeptics who warn it could turn into a “nightmare” for consumers and creatives. 

Many critics also worry that it could destroy the theater industry, as rumors persist that Netflix will push for a shorter theatrical release window for major films. Per reports, the timing could be shortened to as little as 17 days, drastically reducing the industry standard of a 30 to 45-day delay before movies arrive on streaming services.