Warner Bros. Discovery board gives Larry and David Ellison another chance to buy the company.

"Larry and David Ellison are getting another shot to buy Warner Bros. Discovery. The media conglomerate announced Tuesday that it will let the Ellisons make another bid for the company over the next week, with two key stipulations: Their offer has to be more than $31 for each share of WBD, and it will be the last time the Ellisons get to make a formal pitch to the WBD board. WBD's announcement reopens a deal that was theoretically closed last December, when it agreed to sell most of itself to Netflix in an $83 billion transaction."

"Since then, the Ellisons, who bought Paramount last year and want to merge it with WBD, have argued that their offer of $30 per share - for the entire company - was better than Netflix's offer. They have repeatedly told WBD and its investors that they should get another shot at making their case. Their most recent pitch came a week ago, when they offered to pay billions more in fees - including a $2.8 billion penalty WBD would owe Netflix if it walks away from its existing deal - and dangled the prospect of raising the per-share price they'd pay if the deal didn't close by the end of 2026."

"Now, WBD says, they have one more opportunity to bid. WBD says they expect the Ellisons to increase their offer to more than $31 a share. The company is trading around $28 a share, up 170% in the last year. In a press release, WBD officials say that last week, a "senior representative" for Paramount told them that if they had the chance to bid, they would offer $31 per share, but could go above that."

Netflix agreed in December to acquire most of Warner Bros. Discovery in an $83 billion transaction. The Ellison brothers, having bought Paramount and seeking a merger with WBD, contend their $30-per-share all-in offer was superior. The Ellisons recently proposed additional fees, including covering a $2.8 billion breakup penalty owed to Netflix, and indicated willingness to raise per-share pricing if the deal did not close by the end of 2026. WBD reopened bidding and gave the Ellisons one last week to submit an offer above $31 per share, while still formally endorsing the Netflix deal.

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