NEW YORK (AP) — Warner Bros. is telling shareholders of the company that it believes a $72 billion buyout offer from Netflix is superior, and to reject a hostile takeover bid from Paramount Skydance.
Paramount went hostile with its bid last week, asking shareholders to reject the deal with Netflix favored by the board of Warner Bros.
Paramount is offering $30 per Warner share, or $77.9 billion, to Netflix’s $27.75 per share.
A Warner Bros. merger with either company would alter the landscape in Hollywood and will face intense scrutiny from U.S. regulators as it would impact movie making, consumer streaming platforms and, in Paramount’s case, a major source of news for millions of people.
The competing offers set the stage for combining some of the most beloved entertainment properties. Netflix’s vast library includes “Stranger Things” and “Squid Game,” while the much smaller Paramount owns its Hollywood studio and major TV networks like CBS and MTV. Both covet Warner, which owns Warner Bros. Pictures, HBO and the Harry Potter franchise.