Paramount Skydance Corp. has raised its offer to acquire Warner Bros. Discovery Inc., intensifying the competition for one of Hollywood’s most storied studios.
The new bid, whose terms were not disclosed, improves on the 30 dollar per share all-cash proposal that Paramount submitted directly to Warner Bros. shareholders on Dec. 8. It also addresses concerns raised about earlier offers, including greater certainty around financing, the people said.
In December, Warner Bros. agreed to sell its film and television studios and HBO business to Netflix Inc. for 27.75 dollars a share. The deal includes a spinoff of cable networks such as CNN and TNT.
Warner Bros. reopened discussions with Paramount for a seven-day period ending Monday. If the board determines that Paramount’s revised offer is superior, Netflix will have four days to respond.
Paramount previously said Oracle Corp. billionaire Larry Ellison would backstop more than 40 billion dollars in equity being put into the deal by his family and other investors. Paramount also agreed to allow Warner Bros. to operate its business independently before a transaction closes.
Paramount Skydance, formed in August through a combination with David Ellison’s Skydance Media, views the acquisition as a way to rapidly establish itself as a major Hollywood force. A win for Netflix would further cement its position as a dominant player in the entertainment industry.
Shares of Warner Bros. were little changed at 28.98 dollars in extended trading after briefly rising. Paramount shares gained 1.3 percent, while Netflix edged slightly higher.
The contest for Warner Bros., the century-old studio behind films such as Casablanca and Batman, as well as television series including Friends, is among the largest media deals in recent years. The potential sale has drawn concern from lawmakers and industry figures over media concentration and possible job losses.