Warner Bros Discovery seeks improved bids by December 1, sources say

(Reuters) — Warner Bros. Discovery is asking potential buyers to submit improved offers by Dec. 1, two sources familiar with the matter said on Tuesday.

The parent company of HBO and CNN said last month it was exploring sale options. It has since received pre-purchase offers from rivals Paramount Skydance, Comcast and Netflix.

After reviewing the improved bids, Warner Bros. may enter into exclusive talks with one of the bidders, sources said.

Warner Bros. Discovery, Comcast, Netflix and Paramount Skydance did not immediately respond to Reuters requests for comment. Bloomberg News first reported the development early Tuesday.

Paramount is expected to bid for all of Warner Bros. Discovery, including its cable television networks. Paramount’s bid is backed by the studio’s controlling shareholder, billionaire Oracle co-founder Larry Ellison, who is among the richest men in the world.

The potential combination would strengthen Paramount’s presence in movie theaters, giving it a 32% share of the North American theatrical market, according to Comscore, and strengthen its streaming service by combining HBO Max with Paramount.

Any potential deal involving Warner Bros. Discovery would further strengthen the media industry following the $8.4 billion merger of Skydance Media and Paramount Global. The agreement ended a process that had dragged on due to political scrutiny and shareholder concerns.

Reuters exclusively reported that Warner Bros. Discovery’s board rejected Paramount’s cash offer to value the company at about $24 per share, valuing the stake at $60 billion and publicly stating it would evaluate strategic options for the studio.

Shares of Warner Bros Discovery have risen 83% since Paramount’s intention to bid for the media company was announced in September. The stock closed at $22.96 on Tuesday.

The media giant had previously announced plans to separate its studios and streaming businesses from its flagging cable networks by splitting into two publicly traded companies.

(Reporting by Milana Vinn in New York and Jaspreet Singh in Bengaluru; Editing by Leroy Leo)