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Warner Bros. Discovery\u2019s (WBD) board of directors has rejected<\/a> the $108 billion hostile takeover bid<\/a> from David Ellison\u2019s Paramount Skydance, calling the offer \u201cillusory,\u201d and saying that Paramount had misled shareholders about its financing.<\/p>\n Saying it wants to honor its initial agreement to sell to Netflix<\/a>, WBD\u2019s board wrote in a letter to shareholders that Paramount \u201chas consistently misled WBD shareholders that its proposed transaction has a \u2018full backstop\u2019 from the Ellison family.\u201d <\/p>\n \u201cIt does not, and never has,\u201d the letter reads.<\/p>\n WBD\u2019s board said Paramount\u2019s tender offer remains \u201cinferior to the Netflix merger\u201d and noted that Netflix\u2019s $27.75-per-share offer for Warner Bros\u2019 Hollywood studios and streaming business\u00a0\u201cis a binding agreement with enforceable commitments, with no need for any equity financing and robust debt commitments.\u201d<\/p>\n Netflix welcomed the move. \u201cThe Warner Bros. Discovery board reinforced that Netflix\u2019s merger agreement is superior and that our acquisition is in the best interests of stockholders,\u201d said Netflix co-CEO Ted Sarandos in a statement<\/a>.<\/p>\n Paramount and Ellison\u2019s backers, including his father, tech billionaire Larry Ellison, will review WBD\u2019s rejection and determine whether to raise their offer, Variety<\/a> reports.<\/p>\n<\/div>\n