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. Discovery said it had rejected the latest $30-a-share offer from Paramount but would give the company until Monday "to make its best and final offer."
It also said a "senior representative" of Paramount had indicated that the CBS owner 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 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.
Paramount is seeking to buy the entirety of Warner Bros. Discovery.
"Every step of the way, we have provided [Paramount Skydance] with clear direction on the deficiencies in their offers and opportunities to address them," David Zaslav, CEO of Warner Bros. Discovery, said in the statement.
In a letter to the Paramount board — chaired by David Ellison, also the company's CEO and controlling shareholder — 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.
In a separate statement, Netflix hit out at what it called Paramount's "antics."
"Throughout the robust and highly competitive strategic review process, Netflix has consistently taken a constructive, responsive approach with WBD, in stark contrast to Paramount Skydance," it said.
Netflix said that it was "confident that our transaction provides superior value and certainty" but also recognized "the ongoing distraction for WBD stockholders and the broader entertainment industry caused by" Paramount. The company said it granted Warner Bros. the one-week window to reopen talks with Paramount to "fully and finally resolve this matter."
Netflix also took aim at the regulatory process required for either company to complete a takeover.
It said that Paramount has "repeatedly mischaracterized the regulatory review process by suggesting its proposal will sail through."
"WBD stockholders should not be misled into thinking that PSKY has an easier or faster path to regulatory approval — it does not," Netflix said.
In a statement, Paramount Skydance reiterated its existing offer to Warner Bros. Discovery of $30 per share. The company did not indicate if it would submit a higher bid.
Paramount called the one-week negotiating window "unusual" but said it "is nonetheless prepared to engage in good faith and constructive discussions."
The Ellison-backed media giant also said it would continue advocating against the Netflix deal and submit a slate of directors for Warner Bros.' board at the upcoming shareholder meeting, as it previously planned to.
President Donald Trump, whose administration approved Ellison's takeover of Paramount last year, said early in the bidding process he would be involved in approving a deal with Warner Bros.
But earlier this month, Trump changed his tune. "I’ve been called by both sides, it’s the two sides, but I’ve decided I shouldn’t be involved," he told "NBC Nightly News" anchor Tom Llamas.
Trump still hinted that one company looked problematic to him. "I mean, there’s a theory that one of the companies is too big and it shouldn’t be allowed to do it," he said.
"They’re beating the hell out of each other and there’ll be a winner," Trump said.
Warner Bros. has an archive of storied 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.
Since Netflix announced its deal to buy parts of Warner Bros. Discovery, its shares have tumbled nearly 25%.
