Warner Bros. is telling shareholders to reject a takeover bid from Paramount Skydance, saying that a rival bid from Netflix will be better for customers.
It said Wednesday that it "strongly believes" a merger with Netflix will allow it to reach a broader audience.
Paramount went hostile with its bid last week, asking shareholders to reject the deal with Netflix favored by the board of Warner Bros.
Paramount's bid isn't off the table altogether.
While Wednesday's letter to shareholders means Paramount is not the offer favored by the board at Warner Bros., shareholders can still decide to tender their shares in favor of Paramount's offer for the entire company — including cable stalwarts CNN and Discovery.