Warner Bros. Discovery board said the Paramount Skydance offer is not in the company’s and its investors’ best interests, and that Netflix’s offer is better|Public domain; CC BY-SA 3.0

Warner Bros. Discovery’s board has asked shareholders not to accept Paramount Skydance’s $108 billion takeover bid. 

The board said the deal is not in WBD’s and its investors’ best interests and that Netflix’s offer is better. They further told shareholders that Paramount’s offer could expose the company to risks. WBD also accused Paramount of misrepresenting its financing.

Paramount CEO David Ellison said the offer still gives “great value and certainty” to shareholders but did not raise the bid.

Warner Bros. Discovery will continue with its plan to sell its studio, HBO, and HBO Max to Netflix.

After the news, Warner Bros. Discovery shares fell 4.5%, Paramount dropped 1.5%, and Netflix rose slightly.