Paramount bulks up its bid to buy Warner

Rival suitor Comcast proposes combining NBCUniversal with HBO and the company’s film, TV studios

- By MEG JAMES

WARNER BROS. Studios in Burbank. Netflix is among those making offers.

(JILL CONNELLY Bloomberg)

Paramount is raising the stakes in its bid for Warner Bros. Discovery, upping its offer for the assets with backing from Middle Eastern sovereign wealth funds, including Saudi Arabia, while rival Comcast has proposed creating a new entertainment entity.

Instead of offering cash, Comcast has proposed combining NBCUniversal with HBO and the Warner Bros. film and television studios to form a separate standalone entertainment company, according to people familiar with the bids but not authorized to comment.

Such a combination would marry robust film studios, deep libraries and middling streaming services, Warner’s HBO Max and NBCUniversal’s Peacock. It would give Universal's theme parks a wealth of fan-favorite characters — including Batman, Harry Potter and Sheldon Cooper to build new attractions.

Comcast, which would maintain the controlling stake, is not interested in absorbing Warner's basic cable channels.

Representatives of Paramount, Comcast, Netflix and Warner Bros. Discovery declined to comment, citing confidential nature of the bids.

Comcast, Netflix and Paramount each submitted second-round proposals to Warner's bankers Monday. Warner Bros. Discovery hopes to select an auction winner this month.

Paramount, controlled by Oracle co-founder Larry Ellison and his family, has been pursuing Warner Bros. Discovery since September — one month after the billionaire family took the keys to Paramount from former owner Shari Redstone.