Warner Bros Discovery seeks higher offers from potential buyers

New Delhi: Warner Bros Discovery has requested potential buyers to submit revised offers by December 1, according to Reuters. The company, which owns HBO and CNN, had announced last month that it was reviewing strategic options, and has since received preliminary bids from Paramount Skydance, Comcast and Netflix.

Following the submission of improved offers, Warner Bros Discovery may enter a period of exclusive discussions with one of the bidders.

Paramount is expected to bid for the entire Warner Bros Discovery portfolio, including its cable television networks. The bid is reportedly backed by the studio’s controlling shareholder, billionaire Oracle co-founder Larry Ellison. Analysts have suggested that a combination could strengthen Paramount’s position in movie theatres, giving it a 32% share of the North American theatrical market, and enhance its streaming presence by merging HBO Max with Paramount+.

Any potential transaction would add to consolidation in the media sector, following the $8.4 billion merger of Skydance Media and Paramount Global, which faced political scrutiny and shareholder concerns.

According to earlier reports, Warner Bros Discovery’s board rejected Paramount’s largely cash offer of nearly $24 per share, valuing the company at $60 billion, and announced that it would explore other strategic options. Since the announcement of Paramount’s potential bid in September, Warner Bros Discovery’s stock has risen around 83%, closing at $22.96 on Tuesday.

The company has also announced plans to split into two publicly traded entities, separating its studios and streaming business from its cable networks.