Paramount’s latest takeover offer has left Warner Bros. Discovery unimpressed, yet again.

Earlier this morning, the company’s board made a unanimous recommendation to shareholders to reject the revised bid that David Ellison’s media giant filed on December 22. It’s a decision that has been widely anticipated, as WBD has not wavered in its support of the merger deal it signed last month with Netflix. 

“Your board negotiated a merger with Netflix that maximizes value while mitigating downside risks, and we unanimously believe the Netflix merger is in your best interest,” reads the letter. “We are focused on advancing the Netflix merger to deliver its compelling value to you.”

The letter pulled no punches, underlining how the “inferior” Paramount offer still carries significant costs, risks and uncertainties compared to the bid from the world’s biggest streamer. And this is after Paramount tried to ease WBD’s concerns by tweaking its bid to include a US$40.4-billion personal guarantee from Larry Ellison and an increased breakup fee to match Netflix’s.

David Ellison has continued his relentless campaign to beat Netflix in the bidding war, despite multiple rejections from WBD. So further attempts are not out of the question—and they could involve Paramount sweetening its US$30-per-share offer, or trying another strategy to address what WBD sees as weak points in the deal.

Among the biggest issues the board outlined today are the risks of the leveraged buyout approach and the lack of protections for shareholders if the transaction doesn’t close. The board noted that Paramount “repeatedly failed” to improve its proposal terms “despite clear direction from WBD on both the deficiencies and potential solutions”. Indeed, despite multiple bids, Paramount has yet to raise the actual amount of its offer.

Netflix co-CEOs Ted Sarandos and Greg Peters chimed in this morning, welcoming the board’s take. “The WBD board remains fully supportive of, and continues to recommend, Netflix’s merger agreement, recognizing it as the superior proposal that will deliver the greatest value to its stockholders, as well as consumers, creators and the broader entertainment industry,” they said in a joint statement.

The transaction is on track to close in 12 to 18 months, with Netflix setting up a dedicated website to share updates and more detailed information on the deal.

Image courtesy of TopSphere Media/Unsplash.