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Warner Bros. Discovery Feb. 24 announced that its board of directors, following consultation with its independent financial and legal advisors, has determined that Paramount Skydance adding $2.48 billion in cash to its current $108.4 billion bid might lead to a superior proposal than Netflix’s currently accepted $82.7 billion cash deal for WBD’s studio and streaming assets.

The revised proposal ups Paramount’s current all-cash $30-per-share hostile bid to $31, plus Paramount paying a daily ticking fee equal to $0.25 per share per quarter after Sept. 30, as well as responsibility for a $7 billion regulatory termination fee in the event the transaction does not close due to regulatory matters.

Skydance Media acquired Paramount Global for $8 billion last year.

Paramount is also on the hook for paying Netflix the $2.8 billion termination fee that WBD would be required to offer the streamer, in addition to an obligation to contribute additional equity funding to the extent needed to support the solvency certificate required by Paramount’s lending banks, and a “company material adverse effect” definition that excludes the performance of WBD’s pending Global Linear Networks business spin-off.

WBD said the board has not made a determination as to whether the revised proposal is superior to the merger with Netflix. WBD said it would engage with Paramount further to determine if Paramount’s proposal is in fact better than Netflix’s.

If the board determines that Paramount’s bid is superior, Netflix will have four business days to negotiate with WBD and propose any revisions to the Netflix transaction.

The Netflix merger agreement remains in effect, and the board continues to recommend that WBD shareholders remain in favor of the Netflix transaction and is not withdrawing or modifying its recommendation.

Allen & Company, J.P. Morgan and Evercore are serving as financial advisors to Warner Bros. Discovery, and Wachtell Lipton, Rosen & Katz and Debevoise & Plimpton LLP are serving as legal counsel.