Warner Bros Discovery has told shareholders to reject a hostile takeover bid from rival Paramount Skydance, calling the approach “inadequate” and warning it carries “significant risk”.

The company is backing its agreed transaction with Netflix instead, announced in early December, while Paramount has tabled a $30-a-share offer that values Warner Bros at $108.4 billion including debt.

Paramount has argued its proposal has a better chance of clearing regulators, but Affinity Partners, the private equity firm owned by Jared Kushner, has withdrawn its support for Paramount’s bid.