Warner Bros. Discovery has instructed its investors to reject the $108.4 billion (£80.75 billion) merger offer from Paramount Skydance. Warner Bros. signed a $72 billion deal with Netflix for its film and streaming assets, but Paramount claimed that its offer was “superior” to that transaction.
However, Warner Bros.’ board “unanimously” recommended rejecting the offer and decided that the deal with Netflix was in the company’s best interests, in a stunning turn of events in the saga of who will take over one of Hollywood’s oldest and best-known film studios, after receiving multiple expressions of interest from possible buyers, including proposals from Paramount Skydance, the media behemoth listed itself for sale in October.
Warner Bros. Discovery announced on December 5 that it has reached a deal to sell Netflix its movie and streaming divisions. The Warner Bros. Discovery board stated in a lengthy court filing that the Paramount offer poses several significant risks and vehemently denies that the Ellison family, one of the wealthiest in America, is funding the deal.
The billionaire Ellison family, who are close to the president, support Paramount. The Warner Bros. board claims that Netflix’s bid is well financed and offers better long-term value to shareholders, reflecting the current power dynamics in the entertainment sector.
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