Warner Bros. Discovery has decided to resume discussions with Paramount, owned by Skydance, to consider their “best and final” proposal, as the entertainment giant continues to support its existing arrangement with Netflix. The company, known for owning HBO Max and a vast array of popular franchises like the Harry Potter series and DC superheroes, obtained approval from Netflix to re-engage with Paramount for a limited period, aiming to address outstanding issues and clarify certain terms in Paramount’s latest bid. Despite rejecting previous offers from Paramount, including a hostile bid in December, Warner has not altered its stance, reaffirming its commitment to the Netflix merger. In a letter to the Paramount board, Warner Bros. chairman Samuel DiPiazza Jr. and CEO David Zaslav emphasized that the board has not found Paramount’s proposal to be superior to the Netflix deal. The deal with Netflix, valued at $72 billion, encompasses the acquisition of Warner’s studio, streaming business, and HBO Max, with an enterprise value totaling about $83 billion. This move by Warner Bros. to engage with Paramount marks a shift in strategy, following Paramount’s claims of limited engagement by Warner prior to the Netflix merger announcement. Netflix also expressed confidence in its existing agreement with Warner Bros., stating that while they believe their deal offers better value and certainty, they acknowledge the disruptions caused by Paramount’s actions. Paramount, in contrast to Netflix, aims to acquire Warner’s entire entity, including networks like CNN and Discovery, presenting an all-cash offer of $77.9 billion in December. Paramount has indicated a willingness to increase its bid to $31 per share, pending further discussions. The ongoing bidding war raises questions about the future landscape of the entertainment industry, with regulatory approvals being a key consideration for any potential sale. An upcoming special meeting on Friday will see Warner Bros. shareholders voting on the Netflix merger, with the stock prices of Warner Bros., Paramount Skydance, and Netflix experiencing fluctuations in anticipation of the outcome.