Warner Bros board urges shareholders to stick with Netflix and reject Ellison bid

Rejection latest twist in battle for one of Hollywood’s most storied studios

Warner Bros Discovery rejected an amended takeover offer from Paramount Skydance and encouraged shareholders to stick with a deal it has in place with Netflix. Picture: Alamy

Warner Bros Discovery rejected an amended takeover offer from Paramount Skydance on Wednesday and encouraged shareholders to stick with a deal it has in place with Netflix, voicing skepticism about the interloper’s ability to pull off what it said would effectively be the largest leveraged buyout in history.

The snub came after billionaire Larry Ellison said he would personally guarantee $40.4bn (€34.5bn) in equity financing for Paramount’s hostile offer to buy shares at $30 apiece. Warner’s board said on Wednesday in a letter to shareholders that it has doubts that Paramount will be able to close the deal and that its proposal carries significant risks and uncertainties compared with Netflix’s offer of $27.75 per share in cash and stock for a portion of the company.