Warner Bros. Discovery (NASDAQ:WBD) turned down an initial acquisition offer from Paramount Skydance (NASDAQ:PSKY), viewing the proposal as undervalued, Bloomberg News reported, citing people familiar with the matter.
Warner Bros. (NASDAQ:WBD) rejected an offer of roughly $20 per share made in recent weeks.
Paramount (NASDAQ:PSKY), now led by David Ellison, is said to be weighing several options to keep its pursuit alive, including raising the offer price, appealing directly to Warner Bros. (WBD) shareholders or bringing in a financial backer to strengthen its bid.
Bloomberg previously reported that Paramount (PSKY) has discussed potential funding support with Apollo Global Management (NYSE:APO).
Ellison took control of Paramount (PSKY) in August after completing an $8 billion merger between the studio and his own company, Skydance Media.