Warner Bros. Rejects Latest Paramount Bid, Favoring Netflix

Warner Bros. Discovery Inc. rejected an amended takeover offer from Paramount Skydance Corp. and encouraged shareholders to stick with a deal it has in place with Netflix Inc., 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 $40.4 billion in equity financing for Paramount’s hostile offer to buy shares at $30 apiece. Warner’s board said 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 Warner Bros.’ studios and streaming business.