Warner Bros. Discovery recommends investors reject Paramount's hostile takeover bid

The board of Warner Bros.

The board of Warner Bros. Discovery on Wednesday said it was recommending that shareholders reject the hostile takeover bid from Paramount Skydance and its controlling shareholders, the Ellison family.

The company's board said in a statement that it determined that the Paramount Skydance offer "is not in the best interests of WBD and its shareholders."

The board's recommendation to shareholders effectively means Paramount's current offer is dead.

Paramount could return with a higher offer, of course. But in a statement later Wednesday, Paramount said it was not raising its offer yet, merely affirming "its commitment" to the deal that the Warner Bros. board had rejected.

"Our proposal clearly offers WBD shareholders superior value and certainty, a clear path to close, and does not leave them with a heavily indebted sub-scale linear business," said Paramount CEO David Ellison. "I have been encouraged by the feedback we have received from WBD shareholders who clearly understand the benefits of our offer."