In a dramatic shift in the high-stakes battle for Warner Bros. Discovery, the company's directors are leaning toward reopening negotiations with Paramount, the Ellison-backed media giant, according to people familiar with the matter. After weeks of back and forth, this development could tilt control of Warner Bros. toward Paramount, potentially allowing it to refine its bid against rival Netflix.
The move would hinge on Warner Bros.' board formally designating Paramount’s bid as “potentially superior” to Netflix's offer during upcoming meetings. If approved, it would open the door for Paramount to further improve its proposal, marking a pivotal moment in the contentious sale process. The news that Warner is considering discussions with David Ellison’s company was first reported by Bloomberg.
Warner Bros. board members are expected to convene further meetings to make a formal decision on initiating talks with Paramount, another person familiar with the matter said. This comes amid intensifying pressure from shareholders eager for the company to explore all options in the bidding war.
Significant shareholder discontent has fueled the push, including a public display of dissatisfaction from Pentwater Capital, a major owner of Warner Bros. shares. Activist investor Ancora has also built a substantial position in the company, urging Warner Bros. to open discussions with potential buyers like Paramount.
A spokesperson for Warner Bros. declined to comment on the potential negotiations. Representatives for both Paramount and Netflix did not immediately return requests for comment, leaving the media industry watching closely for the board's next steps.
