Warner Bros. Discovery Restarts Deal Talks With Paramount

Warner Bros. Discovery said Tuesday it would restart the deal talks with Paramount Skydance that it had ended in December, giving Paramount until Feb. 23 to present its best and final offer. The company had rejected Paramount’s proposal to buy the entire business for $108 billion in favor of selling its streaming and studios operations to Netflix for $83 billion, calling Netflix’s bid the better option for shareholders.

Paramount has amended its bid twice since then, addressing some board concerns, and its chief executive, David Ellison, has questioned whether the Netflix deal can clear regulatory scrutiny. Some investors, including Pentwater Capital Management, urged Warner Bros.

Discovery to reopen talks; shares of both companies were up about 3 percent in premarket trading. In its latest proposal, Paramount agreed to cover the $2.8 billion fee Warner Bros. Discovery would owe Netflix if that agreement were terminated, to support Warner Bros.

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