Warner Bros. Discovery says Paramount's new bid may beat Netflix

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Warner Bros.Discovery said Tuesday that Paramount Skydance’s revised offer may top a bid from Netflix — the latest twist in the high-profile auction to claim one of Hollywood’s corporate jewels.

Warner Bros.’ board announced that Paramount’s revised proposal “could reasonably be expected to lead to a ‘Company Superior Proposal,’” which could lay the groundwork to scuttle Netflix’s $82.7-billion deal.Warner Bros.

Discovery cautioned that its board members had not agreed to ditch the Netflix proposal but needs to continue to negotiate with Paramount.Paramount late Monday offered to buy all of Warner Bros.Discovery for $31 a share plus an additional amount if the deal fails to close by later this year.

Paramount had previously offered $30 a share.In its revised bid, Paramount also agreed to pay a $7-billion termination fee should a Paramount deal fail to muster regulatory approvals.Paramount also said it would pay $2.8 billion to terminate Warner Bros.’ deal with Netflix.“There can be no assurance that the Board will conclude that the transaction proposed by PSKY is superior to the merger with Netflix or that any definitive agreement or transaction will result from WBD’s discussions with PSKY,” Warner said.

The move came hours after Warner Bros.said it had received Paramount’s revised bid and was mulling the details.

Paramount separately confirmed that it had submitted a revised offer.The Larry Ellison-backed Paramount had been facing a late Monday night deadline to boost its bid to claim the company that owns CNN, HBO, TBS and the storied Warner Bros.movie and film studios.

Last week, the auction’s winning bidder — Netflix — agreed to allow Warner Bros.Discovery to reopen talks with Paramount for seven days to determine whether Paramount would bring more money to the table.

Warner instructed Paramount to present its “best and final” o...