Warner Bros Snubs $108 Billion Takeover, Sticks With Netflix

Warner Bros Discovery has rejected a massive new bid from rival Paramount Skydance. The studio's board unanimously advised shareholders to turn down the $108.4 billion offer. In a letter released Wednesday, the board called Paramount's attempt a "hostile bid." It warned the deal relies on too much borrowed money, calling it a risky "leveraged buyout." The board said this high debt creates a serious risk that the takeover could fail. Instead, Warner Bros reaffirmed its plan to merge with streaming leader Netflix. That earlier agreement is valued at $82.7 billion. The board's rejection signals a strong preference for the less risky Netflix deal over Paramount's larger but debt-heavy proposal.