Paramount Skydance has increased its proposal to buy Warner Bros Discovery and wants to push Netflix out of the bidding race. The new offer could shift the balance in the high-stakes takeover fight.

Warner Bros said Paramount agreed to raise its purchase offer by one dollar per share. The board said the proposal could reasonably lead to a superior deal.

Warner Bros will now hold further talks before deciding whether to abandon the agreement it struck with Netflix in December. Netflix has four days to submit a counter-offer and did not comment immediately.

Netflix Avoids Commitment and Calls Bidding a Normal Process

In a recent interview, Netflix co-chief executive Ted Sarandos avoided saying whether the company would enter a bidding war. He described the back-and-forth as part of the process.

He said Netflix liked the current deal and remained a disciplined buyer. He later called the situation a process of price discovery.

Paramount Pushes Aggressive Strategy to Become a Hollywood Powerhouse

Paramount is backed by tech billionaire Larry Ellison and led by his son David. The company has pushed an aggressive campaign to acquire Warner Bros since last year. It wants to transform itself into a major Hollywood player.

Warner Bros previously rejected Paramount’s offers. In December, it agreed to sell its film and streaming divisions, including HBO, to Netflix. The deal valued the business at 27.75 dollars per share and about 82 billion dollars including debt.

Warner Bros also planned to spin off the rest of its business. This included traditional television networks and its news channel, which would become an independent company.

Higher Offer Includes Break Fees and Extra Payments

After rejection, Paramount improved its original proposal of 30 dollars per share for the whole company. This is the first time it has officially agreed to pay more.

Warner Bros said Paramount now offers 31 dollars per share in cash. The offer includes extra payments if the deal is delayed.

Paramount also agreed to pay seven billion dollars if the deal collapses. It will also cover the 2.8 billion dollar break-up fee Warner Bros would owe Netflix.

Warner Bros said its board has not made a final decision.

Political Scrutiny and Monopoly Concerns Intensify

Lawmakers raised concerns about both takeover proposals. They cited monopoly risks and potential impacts on the entertainment industry.

In a Washington hearing earlier this month, Sarandos faced questions about possible price rises and the future of cinemas.

Democrats also scrutinized the Ellison family’s ties to the Trump administration.

Analysts Expect a Bidding War and Higher Prices

Warner Bros said it will continue discussions to determine whether a superior proposal can be reached.

Media adviser Luke Stillman said Warner Bros likely wants to trigger a bidding war. He said the final price could rise to as much as 33 dollars per share.