Paramount Skydance has raised its bid to buy Warner Bros Discovery and wants to push Netflix out of the takeover race. The revised proposal could decide who controls one of Hollywood’s most powerful media groups.

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

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

Netflix Downplays Takeover Fight and Highlights Discipline

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

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

Paramount Pushes Acquisition Drive With Ellison Family Support

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

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 assets at 27.75 dollars per share and about 82 billion dollars including debt.

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

Higher Cash Offer Adds Penalties and Delay Incentives

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 Pressure Rises Over Monopoly Risks

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 highlighted the Ellison family’s ties to the Trump administration.

Analysts Expect Intensifying Bids and Rising Valuation

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.