NEW YORK: Warner Bros. Discovery on Wednesday rejected a hostile takeover bid by Paramount launched last week to trump plans by streaming giant Netflix to acquire the Hollywood giant and owner of CNN.
In a statement, Warner Bros. said the terms of the Netflix merger were better, while the Paramount offer “once again fails to address key concerns that we have consistently communicated…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,” it said.
Netflix shocked the industry on Dec 5 by announcing it had sealed an agreement to buy the film and television studio for nearly US$83 billion, the entertainment industry’s biggest consolidation deal this decade.
Three days later, Paramount — whose CEO is David Ellison, the son of Larry Ellison, an ally of Donald Trump — launched an all-cash tender offer valuing the entertainment giant at US$108.4 billion.
US President Donald Trump said last week that he wanted to ensure CNN gets new ownership as part of the Warner Bros. Discovery sale, targeting the news outlet he has long feuded with.
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