Warner Bros. Discovery Inc. has turned down Paramount’s $108 billion bid.

As AFROTECH™ previously told you, Netflix agreed to acquire Warner Bros in a deal with a total enterprise value of approximately $82.7 billion (equity value of $72.0 billion). The boards of directors for both Warner Bros and Netflix are in favor of the deal.

Netflix states the agreement would position it to define the “next century of storytelling.” 

“For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come,” President and CEO of Warner Bros. Discovery Inc., David Zaslav, commented in a Dec. 5 press release.

Days later, Paramount entered the race for Warner Bros. Discovery Inc., making a rival bid of $30.00 per share, for an overall enterprise value of $108.4 billion, per a separate AFROTECH™ article.
Paramount submitted various proposals to Netflix over the span of 12 weeks. Those proposals were not accepted, and Warner Bros. Discovery ultimately rejected Paramount’s bid.

“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., chair of the Warner Bros. Discovery board of directors, in a statement, according to The Hollywood Reporter.

“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,” Di Piazza continued.

Ted Sarandos, co-CEO of Netflix, added that Netflix’s merger agreement is the best option for consumers, creators, stockholders, and the overall entertainment landscape.

“Netflix and Warner Bros. complement each other, and we’re excited to combine our strengths with their theatrical film division, world-class television studio, and the iconic HBO brand, which will continue to focus on prestige television,” Sarandos said, per The Hollywood Reporter. “We’re also fully committed to releasing Warner Bros. films in theaters, with a traditional window, so audiences everywhere can enjoy them on the big screen.”