Warner Bros. weighing revised bid from Paramount Skydance as bidding war escalates

Warner Bros.Discovery  said Tuesday it was considering a new bid from Paramount Skydance without disclosing the value of the deal, as the CBS owner makes a last-ditch effort to thwart Netflix from buying the coveted Hollywood studio.The latest offer is higher than Paramount’s previous bid of $30 per share in cash, or $78 billion including debt, for the whole of Warner Bros., a source familiar with the matter told Reuters on Monday.The offer followed a week of talks between the companies to address concerns that prompted the HBO parent to reject previous Paramount bids in favor of Netflix’s $27.75 per share, or $72 billion, deal for its studio and streaming assets.“The Netflix merger agreement remains in effect and the Board continues to recommend in favor of the Netflix transaction,” Warner Bros.

said in a statement.Paramount said it had submitted a revised bid, while Netflix did not immediately respond to a request for comment.Netflix shares closed up more than 2%, while Warner Bros.gained 0.8% and Paramount fell 1.6%.MoffettNathanson analysts have said an offer in the range of $34 per share from Paramount would end the bidding war and “avoid further debate over Discovery Global’s value.”Discovery Global could fetch between $1.33 per share and $6.86 a share, according to Warner Bros.

estimates.If Warner Bros.decides the new Paramount bid is superior to the Netflix deal, the streaming pioneer will have four days to respond, according to the agreement announced in December.Either deal will reshape the power structure of Hollywood by handing the suitor one the industry’s most coveted studios and an extensive content library, as well as major franchises such as “Game of Thrones,” “Harry Potter” and DC Comics.Netflix has ample cash and could bump up its offer for HBO Max owner.

The company has argued its deal offers better value to investors in part due to a spin off of the Warner Bros.cable assets before the acquisition.P...