LOS ANGELES, California: Paramount Skydance has submitted a higher offer for Warner Bros Discovery, intensifying its attempt to disrupt the HBO Max owner's proposed deal with Netflix, a source familiar with the matter said.

The revised bid improves on Paramount's earlier proposal of US$108.4 billion, or $30 per share, for the entire company. It is aimed at addressing Warner Bros' concerns about the certainty of Paramount's financing, the source said. Reuters could not immediately determine the details of the changes. Warner Bros and Paramount declined to comment, and Netflix did not immediately respond.

The contest for Warner Bros, home to franchises such as "Harry Potter" and "Game of Thrones", has escalated into a high-stakes battle over the future of one of Hollywood's most valuable assets in an increasingly streaming-focused market.

Netflix has offered $27.75 per share in cash for Warner's studio and streaming assets, valuing the transaction at $82.7 billion. Under the terms of the agreement, Netflix is allowed to match any improved bid from Paramount, which David Ellison leads.

Variety reported that Warner Bros was likely to review the updated Paramount proposal while still recommending the Netflix deal to shareholders.

Netflix, which has substantial cash reserves, could increase its offer if it chooses. Oracle billionaire Larry Ellison backs Paramount's bid.

Warner Bros previously asked Paramount to submit its "best and final offer" after rejecting an enhanced February 10 bid that would have covered a $2.8 billion termination fee owed to Netflix and added a 25-cent-per-share quarterly "ticking fee" to compensate shareholders for delays. Warner had given Paramount a seven-day deadline, ending on February 23, to submit a revised proposal.

MoffettNathanson analysts earlier said an offer in the range of $34 per share from Paramount could end the bidding war and "avoid further debate over Discovery Global's value."

As part of Netflix's proposal, Warner plans to spin off its cable television assets, including CNN and HGTV, into a separate company called Discovery Global. Warner estimates the spinoff could be worth between $1.33 and $6.86 per share. Netflix has said its offer provides additional upside tied to that separation, arguing it would give the new company greater strategic and financial flexibility.

Paramount has countered that the cable spinoff central to Netflix's proposal is effectively worthless.

Warner Bros, led by CEO David Zaslav, has faced pressure from activist investor Ancora Capital, which built a roughly $200 million stake and criticized the company for insufficient engagement with Paramount. Ancora warned it would vote against the Netflix deal and hold the board accountable at the annual meeting if talks with Paramount are not resumed.

Shares of Paramount rose 1.3 percent to $10.70 in extended trading.

Warner shareholders are scheduled to vote on Netflix's offer on March 20, a key moment in the takeover battle. Even if approved, the deal would face scrutiny from U.S. and European competition authorities assessing potential impacts on consumer choice and market competition.

Lawmakers from both parties have voiced concerns. Paramount has said it secured foreign-investment clearance in Germany and is in discussions with regulators in the United States, the European Union, and the United Kingdom. It maintains that its proposal faces fewer regulatory hurdles than Netflix's.

A Netflix-Warner combination would create the world's largest global streaming platform with about half a billion subscribers. Netflix co-CEO Ted Sarandos has said the merger would benefit Hollywood by avoiding job cuts and lowering consumer costs through bundled offerings.

However, Netflix's argument that it needs Warner to compete with YouTube, the most-watched TV distributor in the United States, according to Nielsen data cited by Netflix, may face resistance from the U.S. Department of Justice, which is reviewing the company's conduct as part of its regulatory assessment.