Warner Bros Discovery is evaluating whether to reopen negotiations with Paramount Skydance after the rival studio submitted an amended bid, according to a report citing individuals familiar with the matter.

Directors are reviewing whether the Paramount proposal represents a stronger strategic and financial alternative, though no final decision has been made. The board could ultimately remain committed to its existing transaction with Netflix, which is currently under agreement.

Paramount recently adjusted its proposal by offering shareholders additional financial incentives tied to delays in closing. The company pledged a 25-cent-per-share quarterly “ticking fee,” estimated at roughly $650 million, beginning in 2027 if the deal is not finalized. It also agreed to assume responsibility for the $2.8 billion breakup fee Warner Bros would owe Netflix if it terminates that agreement.

Despite those concessions, Paramount did not increase its $30-per-share bid, which values the transaction at approximately $108.4 billion including debt.

The contest for Warner Bros underscores the high stakes in the ongoing consolidation battle across the media and entertainment sector. Both Netflix and Paramount are seeking to expand their content portfolios and streaming footprints at a time of intense competition and shifting consumer habits.

Warner Bros controls a significant slate of assets, including its film and television studios, a vast entertainment catalog, and globally recognized franchises such as “Game of Thrones,” “Harry Potter,” and DC Comics properties including Batman and Superman. Its cable holdings also include major networks such as CNN and TNT.

Activist investor Ancora Holdings, which has accumulated nearly a $200 million position in the company, has signaled opposition to the Netflix arrangement. The firm argues the board did not sufficiently engage with Paramount’s competing bid and has called for a fuller evaluation of alternatives that it believes could maximize shareholder returns.

Paramount, Warner Bros, and Netflix have not publicly commented on the latest developments.

The situation remains fluid as Warner Bros’ leadership determines whether to maintain its current path or reenter talks that could reshape one of the industry’s largest proposed media transactions.