Warner Bros. Discovery (WBD) rose 5% after a report that Paramount Skydance (PSKY) is preparing to bid $71 billion for the entertainment giant.
Paramount Skydance (PSKY) formed an investment consortium with the sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi to bid for Warner Bros., according to a Variety report on Tuesday, which cited sources. Each of the funds is expected to put up $7 billion, while Paramount Skydance would pay $50 billion.
The report comes after Warner Bros. (WBD) previously rejected a $23.50/share offer from Paramount Skydance (PSKY). Paramount is competing with Netflix (NFLX) and Comcast (CMCSA) for the entertainment behemoth.
First rounds bids for Warner Bros. are due this week, according to media reports.