On 5 December, Warner Bros Discovery said it had agreed to sell its film and streaming businesses to Netflix.
In a lengthy legal filing, Warner Bros Discovery's board said the offer from Paramount poses numerous and significant risks, and strongly rejects the idea that the Ellison family - one of America's richest - is financially supporting the bid.
Paramount is backed by the billionaire Ellison family, which has close ties to the president.
In a reflection of where power now lies in the entertainment industry, the Warner Bros board says the offer from streaming giant Netflix is well financed and offers better long term value to shareholders.
Netflix welcomed the recommendation from Warner Bros.
Ted Sarandos, Netflix's co-chief executive, called the company's merger agreement "superior" and "in the best interest of stockholders".
In a letter to Warner Bros shareholders, Netflix reiterated its stance that its bid for Warner Bros involves a clearer funding structure and less regulatory risk.
Paramount could still come back with another offer, meaning the take-over saga gripping Hollywood isn't over yet.
