NEW YORK CITY, New York: Warner Bros. Discovery, on January 7, again turned away a takeover offer from Paramount and urged shareholders to remain committed to a rival deal with Netflix, reinforcing its stance in a growing battle over the company's future.

The company said its board had reviewed Paramount's latest proposal and concluded that it does not serve the best interests of Warner Bros. Discovery or its shareholders. The board reiterated its recommendation that shareholders support the previously announced agreement to sell Warner's streaming and studio business to Netflix for US$72 billion.

"Paramount's offer continues to provide insufficient value, including terms such as an extraordinary amount of debt financing that create risks to close and lack of protections for our shareholders if a transaction is not completed," Warner Bros. Discovery Chair Samuel Di Piazza Jr. said in a statement. By contrast, he said the Netflix agreement "will offer superior value at greater levels of certainty."

Warner has repeatedly rejected overtures from Skydance-owned Paramount, most recently urging shareholders just weeks ago to back the Netflix transaction. Paramount, meanwhile, has been pressing ahead with a hostile bid valued at $77.9 billion for the entire company and has sought to strengthen its proposal.

Late last month, Paramount announced an "irrevocable personal guarantee" from Oracle founder Larry Ellison — the father of Paramount CEO David Ellison — to support $40.4 billion in equity financing for its offer. Paramount also raised its promised payout to Warner shareholders to $5.8 billion if regulators block the deal, matching Netflix's breakup fee.

Despite those changes, Warner said in a letter to shareholders on Wednesday that it remains concerned about Paramount's bid. The company said it effectively views the proposal as a leveraged buyout, heavily reliant on debt, and warned that operating restrictions tied to the offer could "hamper WBD's ability to perform" during a prolonged transaction process.

Paramount did not immediately respond to a request for comment. Its hostile bid remains open, and Warner shareholders currently have until Jan. 21 to tender their shares.

The competing offers differ sharply in scope. Netflix is seeking to acquire only Warner's studio and streaming operations, including its television and movie production businesses and platforms such as HBO Max. Paramount, by contrast, is pursuing the entire company, which also includes cable and news networks such as CNN and Discovery.

If the Netflix deal proceeds, Warner's news and cable operations would be spun off into a separate company under a previously announced plan.

Either transaction would likely take more than a year to complete and face intense regulatory scrutiny. Given the size and potential impact of the deals, they are expected to trigger reviews by the U.S. Justice Department, which could seek to block a transaction or demand changes. Regulators in other countries could also intervene, and political considerations may come into play under President Donald Trump, who has made unusual suggestions about his personal involvement in whether such deals are approved.

Trade groups across the entertainment industry have continued to raise concerns about both bids. In a statement to a congressional antitrust subcommittee on January 7, Cinema United, which represents more than 60,000 movie screens worldwide, said it was "deeply concerned" that Netflix's acquisition could harm moviegoers and theater workers, citing the streaming company's reliance on its online platform. The group said its concerns were "no less serious" regarding Paramount's proposal, warning that further consolidation could lead to job losses and reduced diversity in filmmaking.