So, here's what's happening in the streaming world: it's getting expensive. Netflix Inc. (NFLX) shares ticked higher in premarket trading Wednesday. Why? Because the proposed acquisition of Warner Bros. Discovery Inc. (WBD) just got a lot more interesting, and by interesting, I mean there's now a serious bidding war.

Enter Paramount Skydance Corp (PSKY). They've come back to the table with a revised offer: $31 per share in cash. That's a dollar more per share than their initial $108.4 billion, or $30 per share, proposal. It's not just about the price, though. The new bid also includes some hefty breakup fees: a $7 billion fee tied to regulatory hurdles and a $2.8 billion fee Warner Bros. would owe Netflix if it decides to walk away from their existing deal. That's the kind of money that makes you think they're serious.

The Board's Dilemma

This new number was enough to get the attention of Warner Bros. Discovery's board. They've determined that Paramount's revised proposal could reasonably be expected to constitute what's formally called a "company superior proposal" compared to the Netflix offer. In plain English, it's good enough that they have to take a closer look.

So, what happens now? The company will engage further with Paramount Skydance to see if this bid truly clears that high bar. If the board ultimately decides it does, that triggers a clock for Netflix. They'll get four business days to come back to the table and revise their own agreement. It's a classic M&A maneuver: force the first bidder to either pay up or walk away.

Amid all this financial wrangling, Netflix CEO Ted Sarandos is trying to keep the narrative focused. In a recent interview, he addressed the political and creative pressures swirling around the deal. "This is a business deal. It's not a political deal," Sarandos said, as reported by Variety. He's clearly trying to steer the conversation back to dollars and cents.

He also addressed specific concerns, like those from director James Cameron, who has been vocal in his opposition. Sarandos noted he personally met with Cameron in December to reaffirm Netflix's commitment to the traditional 45-day exclusive theatrical window for major films. It's a reminder that big deals like this aren't just about balance sheets; they're also about managing relationships with the talent that creates the content everyone is fighting over.

The Stakes on the Table

For now, the original deal Netflix struck back in December—valued at $27.75 per share—is still the active agreement. It's still expected to close in the third quarter of 2026. Some on Wall Street, like analyst Gary Black, have predicted Netflix would ultimately "emerge as victor" in this contest. But predictions are one thing, and a higher cash offer from a determined rival is another.

The market's early reaction? A slight nod to the increased drama. Netflix shares were up 1.20% at $78.98 during premarket trading on Wednesday. It's a small move, but in the context of a high-stakes takeover battle, every tick tells a story. The story right now is that securing a giant like Warner Bros. Discovery is going to cost more than anyone initially thought, and everyone is recalculating.