Warner Bros. Reopens Talks After Paramount Signals Higher Offer

David Ellison is trying to rewrite the ending to the most dramatic story in Hollywood.

Paramount Skydance Corp.’s chief executive officer will be able to make a “best and final” offer for Warner Bros., potentially upsetting the storied film and TV company’s rival deal with Netflix Inc.

Warner Bros. agreed on Tuesday to reopen negotiations with Paramount after receiving a revised proposal last week that sweetened some of its terms. Paramount had indicated it will raise its bid by at least $1 a share to $31 if Warner’s board reengages.

It’s the first increase in Paramount’s proposed ...