Warner Bros. Discovery says Paramount raised its takeover offer

Paramount on Tuesday sweetened its offer to acquire Warner Bros. Discovery, as the David Zaslav-led media conglomerate pursues a sale of its entertainment studios and spinoff of its linear television assets.

The offer from Paramount, which comes in at $31 per share, is the latest salvo in a hostile bid that seeks to undercut a deal Warner Bros. Discovery struck late last year with Netflix for the streamer to acquire its sprawling movie and TV business, including its extensive catalog of popular shows like “Game of Thrones” and “The Sopranos.”

Warner Bros. Discovery, in a statement on Tuesday, said Paramount’s new offer could reasonably be expected to lead to a “Company Superior Proposal,” a key term that signals company leadership could soon recommend its board support a sale to Paramount.

The Netflix-Warner Bros. Discovery deal has faced intense scrutiny from Capitol Hill lawmakers, some of whom have raised concerns about the company’s growing market share and content production practices.

President Trump has for weeks stopped short of voicing opposition to the deal, but over the weekend attacked Susan Rice, a longtime Democratic political operative who sits on the company’s board, over comments critical of his administration.

The president urged Netflix to cut ties with Rice or, he said, “face the consequences.”

Any deal for Warner Bros. Discovery will be subject to approval from Trump’s Department of Justice, which recently ousted its head of antitrust enforcement.

Trump has separately praised sweeping changes David Ellison has made at Paramount, particularly in its news division at CBS, and signaled he would like to see CNN, the cable channel owned by Warner Bros. Discovery, operate under new leadership.

Unlike the Netflix deal, Paramount is seeking to purchase the entire Warner Bros. Discovery portfolio, including its television assets.

Paramount is also offering to pay a $7 billion termination fee if Warner Bros. Discovery ditches its deal with Netflix, which the company noted on Tuesday “remains in effect” and said its board “continues to recommend in favor of the Netflix transaction and is not withdrawing or modifying its recommendation.”