Warner Bros Discovery has asked potential buyers to submit improved offers by December 1, two sources familiar with the matter said yesterday.

The parent of HBO and CNN last month said it was exploring its options for sale. Since then, it has received preliminary buyout bids from rivals Paramount Skydance, Comcast and Netflix, Reuters reported.

After reviewing any improved offers, Warner Bros may enter a period of exclusive discussions with one of the bidders, the sources said.

Warner Bros Discovery, Comcast, Netflix and Paramount Skydance did not immediately respond to Reuters’ requests for comment. Bloomberg News first reported the development earlier yesterday.

Paramount is expected to bid for all of Warner Bros Discovery, including its cable television networks. Paramount’s bid is backed by the studio’s controlling shareholder, billionaire Oracle co-founder Larry Ellison, who is among the world’s richest men.

The potential combination would enhance Paramount’s presence in movie theatres, giving it a 32 per cent share of the North American theatrical market, according to Comscore, and strengthen its streaming service by combining HBO Max with Paramount+.

Any potential deal involving Warner Bros Discovery would further consolidate the media industry after the $8.4 billion merger of Skydance Media and Paramount Global. The deal had capped a drawn-out deal process marked by political scrutiny and shareholder concerns.

Reuters exclusively reported that Warner Bros Discovery’s board rejected Paramount’s mostly cash offer of nearly $24 a share for the company, valuing it at $60 billion, and publicly announced it would evaluate strategic options for the studio.

Warner Bros Discovery’s stock has soared 83 per cent since Paramount’s intention to bid for the media company was reported in September. The stock closed at $22.96 yesterday.

The media giant previously announced plans to split into two publicly traded companies, separating its studios and streaming business from its fading cable networks.