Warner Bros. is advising shareholders to reject a hostile takeover bid from Paramount Skydance, arguing that a rival offer from Netflix would better serve customers and the entertainment industry.

Paramount offered $30 per Warner share, higher than Netflix’s $27.75, but Warner’s board favors Netflix, citing fiduciary responsibilities and a thorough review of all proposals. Paramount has previously submitted six bids that Warner leadership rejected before taking the offer directly to shareholders. While Paramount’s bid remains possible, the board is clear that Netflix’s acquisition aligns with its long-term strategy.

Unlike Paramount’s bid, Netflix would not acquire Warner’s cable networks, including CNN and Discovery. The deal would only proceed after Warner separates its cable operations. Critics have warned that merging Netflix with HBO Max could create excessive market dominance, while Paramount’s streaming service is comparatively smaller.

The regulatory landscape remains complex for both deals. Paramount acquiring Warner’s cable and news operations could raise concerns over media consolidation and editorial influence, particularly following its $8 billion purchase of Paramount.

Political dynamics may also affect approval. Former President Donald Trump has commented on both deals, noting potential market control concerns with Netflix and his ties to Paramount’s CEO’s family. Trump’s affiliated investment firm, Affinity Partners, had considered backing Paramount but withdrew on Tuesday.

Paramount Skydance did not immediately respond to requests for comment.