Warner Bros. has urged its shareholders to reject a hostile takeover bid from Paramount Skydance, arguing that a proposed tie-up with Netflix would deliver greater value to consumers and support the company’s long-term growth.
In a statement issued on Wednesday, Warner Bros. said a merger with Netflix would expand consumer choice, strengthen distribution reach, and create new opportunities for the creative community. “We strongly believe that Netflix and Warner Bros. joining forces will offer consumers more choice and value, allow the creative community to reach even more audiences with our combined distribution, and fuel our long-term growth," the company said.
Warner Bros. Discovery, whose operations span Warner Bros Entertainment, Turner Entertainment, DC Comics, Hanna-Barbera and Cartoon Network, added that Netflix’s portfolio of global content and studio capabilities would complement its own business rather than overlap with it. “We made this deal because their deep portfolio of iconic franchises, expansive library, and strong studio capabilities will complement not duplicate our existing business," the company noted.
Paramount Skydance went hostile with its bid last week, directly appealing to Warner Bros. shareholders and asking them to reject the Netflix-backed deal that has the support of the Warner Bros. board. Paramount has offered $30 per Warner share, higher than Netflix’s bid of $27.75 per share.
Despite backing the Netflix proposal, Warner Bros. indicated that Paramount’s offer has not been completely ruled out and remains under consideration as shareholders weigh their options.
