Warner Bros. reviews new bid from Paramount

Development comes even as its board reaffirms its support for previously announced buyout deal with Netflix

NEW YORK:

Warner Bros. Discovery said Tuesday it has received a revised acquisition proposal from Paramount Skydance, even as the US media giant's board reaffirmed its support for a previously announced buyout deal with Netflix.

"We received a revised (Paramount) proposal to acquire WBD, which we are reviewing in consultation with our financial and legal advisors," the WBD board said, adding it would update shareholders once the review was complete. Terms of Paramount's new offer were not disclosed, and the Warner Bros. board was careful to signal its preference for the rival Netflix deal.

The deal with the streaming giant "remains in effect" and directors "continue to recommend in favor of the Netflix transaction," the statement said.

WBD shareholders were advised to take no action with respect to the Paramount Skydance tender offer while the review is ongoing.

In its previous offer, Paramount Skydance had sought to buy all of WBD for $108 billion, though the bid was rebuffed.

Netflix is offering $83 billion for its more limited merger, but is expected to be prepared to raise its offer to more closely match its rival's new bid.

The Netflix offer does not include WBD television properties such as CNN and Discovery, which would belong to a newly created publicly traded company called Global Networks if the deal is sealed.

The bidding war, which is set to reshape Hollywood and US media, has drawn White House attention and is likely to face major regulatory scrutiny. President Donald Trump has said he will be "involved" in any decision on the merger, and the US Department of Justice is currently reviewing Netflix's proposed acquisition.

Trump late Saturday called on Netflix to fire board member Susan Rice or "pay the consequences," after she said Democrats would push for corporate accountability if they regain power in the November midterm elections.

Warner Bros., Turner Broadcasting System, Scripps Networks Interactive and Discovery, Inc. have conjoined histories. Warner Bros. was founded on April 4, 1923, by four brothers, Harry, Albert, Sam, and Jack Warner in Hollywood. Warner Bros. established itself as a leader in the American film industry before diversifying into animation, television, and video games. It is one of the "Big Five" American film studios, as well as a member of the Motion Picture Association (MPA). In 1965, Turner Broadcasting System was founded by Ted Turner in Atlanta, Georgia. A year later, Kinney National Company came into existence. It reincorporated as Warner Communications in 1972 before merging with Time Inc. in 1990 to become Time Warner. During its time as Warner Communications, the company made further acquisitions.