LOS ANGELES, Dec. 17 (Xinhua) -- The board of Warner Bros. Discovery (WBD), a leading global media and entertainment company, on Wednesday recommended that shareholders reject Paramount Skydance's 108.4-billion-U.S.-dollar tender offer and reiterated its support for the Netflix combination.
"Following a careful evaluation of Paramount's recently launched tender offer, the Board concluded that the offer's value is inadequate, with significant risks and costs imposed on our shareholders," said Samuel A. Di Piazza, Jr., board chair of WBD, in a statement.
"This offer once again fails to address key concerns that we have consistently communicated to Paramount throughout our extensive engagement and review of their six previous proposals. We are confident that our merger with Netflix represents superior, more certain value for our shareholders and we look forward to delivering on the compelling benefits of our combination," he added.
Netflix, the world's largest streaming company by subscriber count, sent shockwaves through Hollywood on Dec. 5 by announcing an 82.7-billion-U.S.-dollar agreement to acquire WBD, including the company's film and television studios. The cash and stock transaction is valued at 27.75 dollars per share.
The acquisition also includes Home Box Office, the premium U.S. television network and streaming service, along with HBO Max and its prestige series such as "Game of Thrones," "The Sopranos," and "The White Lotus."
But Netflix's effort to acquire WBD is facing unexpectedly strong resistance and intensifying political scrutiny, as a hostile bid from Paramount Skydance has placed the merger at the center of a widening national debate.
Paramount Skydance, a multinational media and entertainment conglomerate, announced on Dec. 8 that it would offer 30 U.S. dollars per share for WBD, dismissing Netflix's proposal as offering "inferior and uncertain value."
