Warner Bros. Discovery reviewing sweetened bid from Paramount Skydance

Warner Bros. Discovery on Tuesday said it is reviewing an enhanced bid for the entertainment and media company from Paramount Skydance. Terms of the offer were not disclosed.

Paramount Skydance is seeking to outmaneuver Netflix and secure a deal to buy the owner of HBO, CNN and the “Harry Potter” franchise. 

The sweetened bid comes a week after Warner Bros. Discovery said it would resume talks with Paramount Skydance, the owner of CBS News, to discuss its previous $30 per share bid.

In its statement on Tuesday, Warner Bros. Discovery said its merger agreement with Netflix remains in effect and that its board of directors ” continues to recommend” the deal.

Paramount Skydance representatives didn’t immediately return a request for comment.

The latest development raises the stakes in the contest over Warner Bros. Discovery, which, along with its streaming and film studios, also owns cable channels including Food Network, HBO Max, HGTV, TBS and TNT. 

Warner Bros. Discovery drew competing bids last year from Paramount Skydance and Netflix before the streaming giant in December struck a deal to buy the company for $27.75 per share, or $82.7 billion.

Paramount Skydance has said that its bid represents a superior financial offer for Warner Bros. Discovery shareholders, while also describing Netflix’s bid as likely to run afoul of U.S. antitrust laws. 

Netflix’s deal is only for Warner Bros. Discovery’s studio and streaming business, with the takeover slated to occur after Warner spins off its television networks. Paramount Skydance is bidding to acquire all of Warner Bros. Discovery’s assets.