So, you thought the streaming wars were intense? Try the bidding wars. The fight for one of Hollywood's crown jewels just got a little more expensive.

According to reports, Paramount Skydance (PSKY) has upped its offer for Warner Bros Discovery (WBD). The move is an attempt to turn up the heat in what's becoming one of the most watched media battles in recent memory. The company is reportedly trying to ease concerns about the certainty of its financing with this revised bid, though specific new terms weren't disclosed.

This comes after Paramount's initial hostile bid of $108.4 billion, or $30 per share, was rejected. Warner Bros had previously mentioned that Paramount had unofficially floated a $31 per share offer. Now, it seems the official number is going even higher.

But here's the twist: Warner Bros isn't just sitting around waiting for Paramount's envelope. A report from Variety suggests the company is likely to consider this new Paramount offer while still recommending its existing merger agreement with Netflix Inc. (NFLX) to shareholders. It's the corporate equivalent of keeping your options open on a very, very expensive first date.

Earlier this month, Warner Bros gave Paramount until February 23 to submit its "best and final offer." Under the terms of the Netflix merger agreement, Netflix would have the right to match any superior proposal. So, every time Paramount raises its hand, Netflix gets a chance to raise its own.

Analyst Gary Black has been watching this drama unfold and has placed his bet. He predicts Netflix will "emerge as victor" in the contest. Interestingly, he also suggested that even if Paramount somehow pulls off an upset and secures the deal, Netflix shares could rebound to the $100 mark—a level they haven't seen since December 5. The logic? Netflix reportedly has plenty of cash on hand to raise its own bid if needed, and the market might view a lost bid as a signal to deploy that capital elsewhere, perhaps on other strategic moves or shareholder returns.

While the financiers and analysts crunch the numbers, the creative side of Hollywood is watching with a mix of fascination and dread. Renowned director James Cameron has voiced serious concerns about Netflix's proposed purchase of Warner Bros Discovery's film studio. He warned that such a deal could severely damage the theatrical film business, likening the potential fallout for cinemas to a "sinking ship." It's a stark reminder that behind these billion-dollar ticker symbols are movie studios, backlots, and the future of how we watch stories on the big (and small) screen.

Paramount and Warner Bros did not immediately respond to requests for comment on the latest reports. So for now, the market—and Hollywood—will have to wait for the next scene in this high-stakes drama.