Warner Bros could reopen sale talks with Paramount in newest episode of Hollywood takeover tussle

Warner Bros Discovery may revive sale talks with Paramount Skydance, in a move that could trigger a fresh Hollywood bidding war with Netflix.

It is the latest twist in the blockbuster takeover battle as Paramount shows little sign of relenting in its pursuit of a hostile £76.8billion takeover of the studio behind films from Casablanca and the Wizard of Oz to Superman and Harry Potter.

And now members of Warner’s board are considering reopening discussions after Paramount’s latest bumped up offer, according to a report by Bloomberg.

Paramount hopes to derail Netflix’s £60billion takeover of Warner’s film studios and HBO streaming arm so it can buy the whole studio.

This would include its cable TV channels such as CNN and TNT Sports and the Discovery+ streaming service.

Paramount, which is behind films including The Godfather and Top Gun, as well as TV shows such as Landman and Tulsa King, has this month sweetened its offer.

Warner Bros Discovery – which is the studio behind films including the Harry Potter franchise – is caught in a Hollywood bidding war between Paramount and Netflix

It said it will cover the £2billion breakup fee that Warner Bros would have to pay Netflix if it terminates its agreed deal with the streaming giant. It has also added a so-called ‘ticking fee’ of £485million if completion of the deal drags on.

But Warner still hasn’t decided how to respond to this amended offer, Bloomberg reported.

Should it reopen talks with Paramount, Warner would have to notify Netflix first, which would pave the way for a bidding war. Its board members have already backed the deal with Netflix.

Netflix is seeking to build an unassailable position in streaming with its own hits, including Bridgerton and Squid Game.

But the deal is likely to face close scrutiny from competition regulators.

And Paramount boss David Ellison has already suggested he will go to the hilt for an acquisition.

‘We are making meaningful enhancements – backing this offer with billions of dollars, providing shareholders with certainty in value, a clear regulatory path, and protection against market volatility,’ he said last week, after sweetening the deal.

Warner must respond before Paramount’s looming deadline of 20 February. Paramount has already extended the deadline in order to woo investors.