Warner Bros. Discovery reopens bidding, gives Paramount seven days to make its case

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Warner Bros.Discovery is cracking open the door to allow spurned bidder, Paramount Skydance, to make its case that it should win the legendary entertainment company — the latest twist in the contentious, high-stakes auction.Warner’s decision to reopen talks comes after weeks of pressure from Paramount and its controlling shareholder, scion David Ellison and his billionaire father, tech mogul Larry Ellison.

The Ellisons, who took control of Paramount last August, are refusing to concede defeat in their campaign to buy Warner Bros.Discovery to build a media behemoth.

Last week, Paramount submitted an enhanced offer to buy Warner and told Warner executives that it was prepared to raise its bid even higher.Paramount’s willingness to hike its offer late in the process attracted attention of some Warner investors and challenged the Warner board’s steadfast embrace of a competing bid by Netflix.“This is very dramatic,” Julie Clark, senior vice president of media and entertainment at information firm TransUnion.

“What this [auction] is showing is the industry is at an inflection point: It’s about how scale and data and distribution will define the future of media.”On Tuesday, Warner Bros.Discovery sent a letter to Paramount’s board, giving the group seven days to “clarify your proposal.”“We seek your best and final proposal,” Warner board members wrote.

Warner set a Feb.23 deadline for Paramount to comply.The closely watched sale of the century-old Warner Bros., known for “Batman,” “The Big Bang Theory,” Bugs Bunny, “Casablanca,” and HBO, the home of “Game of Thrones” and “Succession,” is expected to reshape Hollywood with yet more industry consolidation.

It’s the largest media deal in nearly a decade and would hand some of the most beloved brands in entertainment to new owners.The turmoil comes as Hollywood workers are struggling to...