Paramount Skydance Corp. has improved its unsolicited takeover offer for Warner Bros. Discovery in an effort to win shareholder support for its proposal over a competing bid from Netflix.

In a statement released on Tuesday, Paramount said it would cover the $2.8 billion termination fee that Warner Bros. would owe Netflix if it ends a previously agreed transaction with the streaming giant. Paramount will also assume $1.5 billion in costs related to refinancing Warner Bros. debt.

To demonstrate confidence in securing swift regulatory approval for the deal, Paramount stated it would pay Warner Bros. shareholders a "ticking fee" of 25 cents per share each quarter if the transaction remains incomplete after December 31.

For months, Paramount has been actively pursuing the acquisition of Warner Bros. The media company, led by David Ellison, was caught off guard when Warner Bros.' board agreed to sell its production business and HBO Max streaming service to Netflix for $27.75 per share, valuing the deal at approximately $82.7 billion.

Paramount noted that it has complied with the U.S. Department of Justice’s second request for information regarding its offer, triggering a 10-day response period for regulators.

For Paramount, showcasing its regulatory advantages is a key part of its strategy to block Netflix’s acquisition plan. If Paramount successfully navigates this waiting period, it could use the government’s tacit approval as a signal to persuade Warner Bros. shareholders to vote against the Netflix deal.