Warner Bros. Discovery said Tuesday that it was reopening talks with Paramount Skydance, giving the studio a week to rival Netflix in its bid to take over the streaming and cable giant.
In a statement, Warner Bros. said it had rejected the latest $30-a-share offer from Paramount but would give the company until Feb. 23 « to make its best and final offer. »
It said Paramount had indicated it would be willing to meet an even higher price, $31 a share, seemingly enticing the board back to the table.
At the same time, Warner Bros. is still recommending its shareholders vote at a special meeting on March 20 to approve the $82.7 billion deal it reached in December to sell its streaming service, studio and HBO cable channel to Netflix.
« Every step of the way, we have provided PSKY with clear direction on the deficiencies in their offers and opportunities to address them, » David Zaslav, president and CEO of Warner Bros., said in the statement.
In a letter to the Paramount board — chaired by David Ellison, also the company’s CEO — Warner Bros. said that while Paramount had indicated it would address « unfavorable terms and conditions, » these had not yet been removed from the proposed merger agreement.
Warner Bros. has repeatedly rejected previous bids from Paramount, citing the « insufficient value » offered.
Warner Bros. has a storied archive of movies as well as a diverse portfolio of brands including CNN and HBO.
The bidding war for the media empire comes at a pivotal time for the entertainment industry, with traditional broadcasters and studios facing serious challenges from digital newcomers Netflix, Apple and Amazon.
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