Warner Bros Discovery seeks higher bids by 1 December
The company has also announced plans to separate its businesses into two publicly traded entities, splitting its studio and streaming operations from its declining cable networks.
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Warner Bros Discovery has requested that potential buyers submit improved takeover offers by 1 December, according to two people familiar with the discussions, as reported by Reuters.
The media conglomerate, which owns HBO and CNN, announced last month that it was assessing its strategic options. Since then, it has received initial bids from Paramount Skydance, Comcast and Netflix.
Sources stated that once revised offers are reviewed, Warner Bros Discovery may enter a period of exclusive negotiations with one of the bidders.
The companies involved — Warner Bros Discovery, Comcast, Netflix and Paramount Skydance — did not immediately respond to Reuters’ requests for comment. The development was first reported by Bloomberg on Tuesday.
Paramount is expected to bid for the entirety of Warner Bros Discovery, including its cable television networks. The offer is being backed by Paramount’s controlling shareholder, billionaire Oracle co-founder Larry Ellison, one of the world’s wealthiest individuals.
If successful, the deal would significantly expand Paramount’s footprint in cinemas, giving the combined entity a 32% share of the North American theatrical market, according to Comscore. It would also bolster its streaming ambitions by uniting HBO Max with Paramount+.
Any agreement involving Warner Bros Discovery would mark further consolidation in an industry that has already witnessed the $8.4 billion merger of Skydance Media and Paramount Global — a protracted process that attracted political scrutiny and prompted shareholder unease.
Reuters previously reported that Warner Bros Discovery’s board rejected Paramount’s largely cash bid of nearly $24 per share, valuing the company at around $60 billion, before publicly confirming that it would explore strategic options.
Shares of Warner Bros Discovery have risen 83% since news of Paramount’s interest surfaced in September, closing at $22.96 on Tuesday.
The company has also announced plans to separate its businesses into two publicly traded entities, splitting its studio and streaming operations from its declining cable networks.
