Warner Bros. Discovery indicated that a new acquisition proposal from Paramount, offering $31 per share, could result in a transaction superior to its existing agreement with Netflix, potentially initiating a new round of bidding for the renowned Hollywood studio.

A statement released on Tuesday clarified that Warner Bros. Discovery has not withdrawn its recommendation for investors to support the Netflix deal, valued at $27.75 per share for its film production assets and HBO business. However, the company stated that the latest terms proposed by Paramount have met the threshold for further negotiations.

This renewed offensive from Paramount signals that the David Ellison-led company is not abandoning its pursuit of Warner Bros. Discovery in the short term. The increased offer will test Netflix's willingness to pay a higher price for Warner's production business and content library, which includes the DC Comics series and "Game of Thrones."

Warner Bros. Discovery stated that its board has not yet determined whether the revised proposal from Paramount is superior to the merger plan with Netflix. The company plans to engage in further discussions with Paramount and noted that if the board endorses the enhanced offer, Netflix would have four business days to respond.

This decision follows the conclusion of a seven-day window during which Paramount was permitted to resume negotiations with Warner Bros. Discovery.

According to people familiar with the matter, discussions between the two parties continued late into last night, with calls having to be concluded as the negotiation window expired at midnight. This has left some unresolved issues that the parties can now continue to address.

The revised Paramount proposal represents a $1 increase over its previous offer of $30 per share. The prior offer valued the company, including debt, at approximately $108 billion. Calculated on the same basis, Netflix's proposal values the company at $82.7 billion, although Warner Bros. Discovery believes that spinning off its cable television channel business would deliver additional value to investors.

Following the announcement, Warner Bros. Discovery's stock fell less than 1% in after-hours trading, possibly because some investors had anticipated a higher offer. Shares of both Paramount and Netflix rose more than 1%.