Warner Bros. Discovery is splitting into two independent companies, separating its streaming business from legacy media channels. The board rejected Paramount Skydance’s $108 billion hostile takeover bid, calling it misleading and inferior to Netflix’s offer of $27.75 per share for the studios and streaming business.

In a letter to shareholders, Warner Bros. Discovery’s board emphasized honoring the initial agreement to sell to Netflix and criticized Paramount for misleading claims about financing. Netflix’s co-CEO Ted Sarandos welcomed the board’s decision, stating that the merger with Netflix is in the best interest of stockholders.

Paramount and Larry Ellison’s backers, including tech billionaire Larry Ellison, will review Warner Bros. Discovery’s rejection of the offer. The board reiterated that Netflix’s merger agreement is superior, with enforceable commitments and no need for equity financing. Variety reports Paramount may consider raising their bid in response.

Read more at Yahoo Finance: Warner Bros. Discovery rejects Paramount’s hostile bid, calls offer ‘illusory’