Warner Bros Discovery has turned down Paramount Skydance's recent acquisition offer of $30 per share, although they have provided an opportunity for the Hollywood studio to improve its proposal. Warner Bros announced that they have given Paramount seven days to see if they can present a better bid to acquire the owner of HBO Max and the 'Harry Potter' franchise. In response to the initial proposal, Paramount reportedly informally suggested a higher price of $31 per share, which has encouraged a continued dialogue between the companies.

The current circumstances allow the rival bidder to submit their 'best and final offer' by February 23, with Netflix having the option to match this offer under the terms of a merger agreement. This competitive backdrop highlights the intense rivalry in the media industry as companies vie for significant properties and stakes in streaming services. It also underscores the ongoing trend of consolidation within the sector, as major players seek to bolster their content libraries and market positions.

Warner Bros' leadership, including chairman Samuel DiPiazza Jr. and CEO David Zaslav, articulated in a recent letter that their board has not yet determined that Paramount's proposal would result in a transaction more favorable than its existing merger agreement with Netflix. This scenario places additional pressure on Paramount to redefine its strategy, potentially altering the landscape of media mergers and acquisitions as negotiations unfold in the coming days.