Warner Bros. Discovery Inc (NASDAQ:WBD) said Tuesday that Paramount Skydance Corporation (NASDAQ:PSKY) raised its hostile takeover offer to $31 per share, up from $30, in the latest twist of a bidding war that could reshape Hollywood.

The WBD board acknowledged for the first time that Paramount’s revised proposal “could reasonably be expected to lead to” a superior offer versus its existing deal with Netflix Inc (NASDAQ:NFLX).

Until now, the board had repeatedly rejected Paramount’s advances.

Polymarket Can’t Pick A Winner

On Polymarket’s “Who will close Warner Bros. acquisition?” market, Paramount leads at 45%, Netflix is at 42% and No Deal is at 11%.

A related market on if the acquisition is announced by June 30 sits at 42%.

A separate contract on Netflix actually closing by year-end sits at 37%. Once a deal is agreed between the two parties, government regulators will still need to be satisfied.

What’s On The Table

Paramount’s sweetened offer values WBD at roughly $77 billion.

It includes a $7 billion reverse termination fee if regulators kill the deal, plus coverage of the $2.8 billion breakup fee WBD would owe Netflix for walking away.

Netflix’s existing agreement prices WBD’s studio and streaming assets at $27.75 per share.

Paramount wants all of WBD, including the cable networks Netflix would leave behind.

If the board formally declares Paramount’s bid superior, Netflix has four business days to match or walk.

According to a Variety report, Moffett Nathanson analyst Robert Fishman suggested Netflix may bail if the price climbs above $32.

The Political Dimension

Paramount CEO David Ellison is backed by his father Larry Ellison, who has personally guaranteed $40.4 billion in equity financing.

The elder Ellison’s close relationship with President Donald Trump has loomed over the process, though Trump has since said he’ll leave the decision to the DOJ.

That political backdrop has spilled into the bidding war, with Trump recently demanding that Netflix “fire racist, Trump Deranged Susan Rice, IMMEDIATELY, or pay the consequences.”

What To Watch

WBD reports Q4 earnings Thursday before market open.

Shares traded around $28.95 on Wednesday, well below both offer prices, reflecting skepticism that either deal closes smoothly.

Analyst Gary Black predicted Netflix will ultimately win and sees NFLX rebounding to $100 even if Paramount prevails.

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