NEW YORK — Warner Bros. Discovery is recommending its shareholders reject an unsolicited buyout offer from Paramount Skydance in favor of a rival bid from Netflix it said will better serve their interests and the entertainment company’s audiences.

The competition between Netflix and Paramount Skydance to acquire the studio is haunted by the ghosts of mergers past.

The story of the American 20th century is easily traceable through the films of Hollywood studios, and Warners was the leading light

Netflix Inc. agreed Friday to acquire Warner Bros. Discovery Inc.’s studios, HBO and HBO Max for $82.7 billion in cash and stock, a transaction that merges two entertainment giants and reshapes Hollywood’s landscape.

Theater owners fear a sale of Warner Bros. to another major media player could further decrease movie production at a time when the industry has faced multiple setbacks.

New Mexico filmmakers express concerns and optimism about the potential $80 billion Netflix-Warner Bros. deal, which could impact the entertainment industry and local film production.