Paramount Skydance has raised its bid to buy Warner Bros Discovery and aims to push Netflix out of the takeover race. The increased offer could change the outcome of the competition for the media giant.

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

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

Netflix Signals Discipline and Avoids Talk of a Bidding War

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

He said Netflix liked the current deal and remained a disciplined buyer. He later described the negotiations as a process of price discovery.

Paramount Pushes Long Campaign to Build a Hollywood Powerhouse

Paramount is backed by tech billionaire Larry Ellison and led by his son David. The company has pushed a high-profile campaign to buy Warner Bros since last year. It wants to transform itself into a major Hollywood force.

Warner Bros rejected Paramount’s earlier 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 planned to spin off the rest of its operations. This included traditional television networks and its news channel, which would become an independent company.

Higher Bid Brings Cash Offer and Costly Break Fees

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

Warner Bros said Paramount now offers 31 dollars per share in cash. The bid includes additional payments if completion is delayed.

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

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

Political Scrutiny Grows Over Media Power and Market Impact

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

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

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

Analysts Expect Fierce Bidding and Higher Final Price

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.