Warner Bros. Discovery reopens talks with Paramount

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.