Warner Bros. Says Paramount’s New $31 Offer May Top Netflix (3)

Warner Bros. Discovery Inc.said a new $31-a-share buyout offer from Paramount Skydance Corp. could lead to a better deal than its existing agreement with Netflix Inc., kicking off another potential round of bidding for the famed Hollywood studio.

Warner Bros. isn’t withdrawing its recommendation that investors support Netflix’s $27.75-a-share agreement to buy the company’s studio and HBO operations, according to a statement Tuesday. Instead, it’s saying the latest Paramount terms meet the threshold for further talks.

Paramount’s latest salvo shows the company, led by David Ellison, isn’t dropping its pursuit of Warner Bros. anytime soon. The sweetened ...