Yahoo Finance·2025-12-17 21:20Core Viewpoint - Paramount Skydance's bid to acquire Warner Bros. Discovery has faced a setback as WBD's board recommended shareholders reject Paramount's tender offer in favor of a sale to Netflix [1][2]. Group 1: WBD's Decision - WBD's board cited that Paramount's offer was less sound than Netflix's, particularly noting the lack of an equity backstop from the Ellison family for the $108 billion offer [2]. - WBD emphasized that Paramount's offer was non-binding, allowing Paramount to withdraw at any time, which raised concerns about its reliability [2][3]. - WBD dismissed Paramount's claims of lower regulatory risk, stating there was "no material difference in regulatory risk" between the two offers [3]. Group 2: Paramount's Response - In response to WBD's recommendation, Paramount urged shareholders to tender their shares at the offered price of $30 per share, asserting that its offer was fully financed and had a clearer path to completion [4]. - Despite WBD's stock trading below the $30 threshold, between $28 and $29, indicating potential shareholder interest in selling to Paramount, WBD's stock fell nearly 2% following the announcement [5]. Group 3: Future Implications - The merger between WBD and Netflix is not finalized, as WBD shareholders have until January 8 to tender their shares to Paramount, which could potentially block the Netflix deal if Paramount gains a majority [8].