Warner Bros reopens talks with Paramount Skydance

(Sharecast News) - Warner Bros Discovery said it had rejected Paramount Skydance's $30-a-share hostile takeover bid but gave the Hollywood studio a week to formulate a better deal.

Streaming service Netflix, which has tabled an agreed $83bn offer, had provided a limited waiver under the terms of the merger agreement allowing WBD to engage in talks with Paramount Skydance for a seven-day period ending on February 23 "to seek clarity for ... stockholders and provide PSKY the ability to make its best and final offer", WBD said in a statement.

"WBD will engage with PSKY to discuss the deficiencies that remain unresolved and clarify certain terms of PSKY's proposed merger agreement. Netflix retains its matching rights as defined by the merger agreement."

Paramount informally broached an even higher share price of $31 a share, WBD said.

Reporting by Frank Prenesti for Sharecast.com