Paramount Skydance has increased its bid to acquire Warner Bros Discovery and is trying to push Netflix out of the takeover race. The upgraded offer could determine who controls one of Hollywood’s largest media companies.

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

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

Netflix Keeps Its Options Open and Avoids Bidding War

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 part of the normal 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 Drives Acquisition Strategy With Ellison 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 become a major Hollywood powerhouse.

Warner Bros rejected Paramount’s previous 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.

New Cash Offer Raises Price and Includes Break-Up 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 extra 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 made a final decision.

Lawmakers Warn of Monopoly Risks and Industry 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 Predict Bidding War Could Push Price Higher

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.