Warner Bros. Discovery said Tuesday that a revised takeover offer from Paramount valuing the company at $31 a share could reasonably be expected to lead to a “superior proposal” to its existing $83 billion deal with Netflix, The New York Times reports.

The media giant said it will continue talks with Paramount after the studio raised its bid from $30 per share earlier this week, marking the latest turn in a months-long battle over the company’s future.

In December, Warner Bros. Discovery’s board agreed to sell a large portion of its business to Netflix, rejecting Paramount’s earlier $108 billion proposal to acquire the entire company.

Paramount later took its case directly to shareholders in a hostile bid and has now sweetened its offer.

Under the revised proposal, Paramount would pay shareholders a 25-cent-per-share quarterly ticking fee if the transaction does not close by Sept. 30.

It has also pledged to pay a $7 billion termination fee if regulators block the deal and to cover the $2.8 billion breakup fee Warner Bros. Discovery would owe Netflix if it exits that agreement.

Paramount has agreed to contribute additional equity if required by lenders and dropped a previous condition that would have allowed it to walk away if Warner Bros. Discovery’s cable business underperformed.

Warner Bros. Discovery emphasized that no final decision has been made.

In a statement Tuesday, the company said that “there can be no assurance that the board will conclude that the transaction proposed by” Paramount is “superior” to the Netflix deal.

“The Netflix Merger Agreement remains in effect, and the board continues to recommend in favor of the Netflix transaction and is not withdrawing or modifying its recommendation,” Warner Bros. Discovery added. Shareholders are scheduled to vote on the Netflix deal on March 20.

If the board ultimately determines Paramount’s bid is superior, Netflix would have four days to submit a counterproposal under the terms of the existing merger agreement.

Paramount welcomed the development.

“Paramount welcomes the WBD board’s determination,” the company said in a statement, “and looks forward to continuing to engage constructively with WBD to deliver the benefits of Paramount’s proposal to WBD shareholders, the creative community and consumers.”

The competing offers have triggered a fierce bidding war between two entertainment heavyweights.

Netflix has the financial capacity to increase its offer, though its shares — down more than 14% this year — have reflected investor caution. The stock rose modestly in after-hours trading Tuesday.

Beyond price, shareholders must weigh which transaction is more likely to secure regulatory approval — a key hurdle before any payout.

Politics have complicated the landscape. President Trump has shown interest in major media deals and has met in recent months with executives from both Paramount and Netflix.

While he has not publicly committed to intervening in any Justice Department antitrust review, his comments have drawn scrutiny.

Over the weekend, Trump called on Netflix to remove Susan Rice from its board. Rice previously served in senior roles in Democratic administrations.

“He likes to do a lot of things on social media,” Netflix co-chief executive Ted Sarandos told the BBC’s “Today” program on Monday when asked about Trump’s post.

“This is a business deal. It’s not a political deal. This deal is run by the Department of Justice in the U.S. and regulators throughout Europe and around the world.”

Paramount may have an edge in the regulatory process.

The company filed for antitrust approval of its hostile bid soon after announcing it and said last week it had achieved a key milestone toward Justice Department clearance. Still, regulators could move to block the transaction.

As part of its review of the Netflix deal, the Justice Department has reportedly asked competitors whether the transaction could create a monopoly.

In a statement Monday, Netflix chief legal officer David Hyman said the company “operates in an extremely competitive market,” adding that “we’ll gladly cooperate, as we always do, with regulators on any concerns they may have.”

For now, Warner Bros. Discovery remains publicly committed to its Netflix agreement — but its acknowledgment that Paramount’s higher bid could be “superior” keeps the takeover fight very much alive.