Warner Bros. Discovery (WBD) said Paramount Skydance (PSKY) has raised its takeover bid to $31 per share, up from $30, in a proposal that could surpass WBD’s existing deal with Netflix.

WBD is reviewing the revised offer, which is all cash and includes a $7 billion breakup fee if regulators block the merger, plus a $2.8 billion fee to cover Netflix if that deal is abandoned.

The board has not yet determined if the Paramount bid is superior and will continue engaging with PSKY while maintaining its recommendation for the Netflix transaction, which values WBD’s assets at roughly $82.7 billion.

Paramount previously launched a hostile tender offer and aims to combine WBD’s linear networks and digital assets with its own, potentially merging HBO Max with Paramount+ and consolidating major studios and news outlets, CNBC has reported.

Both the Netflix-WBD and potential Paramount-WBD deals would require U.S. and European regulatory approval and face antitrust scrutiny.