Warner Bros Discovery Inc. is considering reopening sale talks with Paramount Skydance Corp. after receiving a revised offer, potentially sparking a bidding war with Netflix Inc. Paramount addressed concerns in its amended offer, agreeing to cover fees if the deal falls through and offering compensation if not closed by Dec. 31.

Warner Bros still has reservations about Paramount’s offer but is considering it could lead to a better deal or prompt Netflix to increase its bid. Warner Bros is under pressure from shareholders to engage with Paramount. Warner Bros has a binding agreement with Netflix for a $27.75 per share deal.

Both Paramount and Netflix are open to raising their bids to secure a deal with Warner Bros. Paramount CEO David Ellison and Netflix leadership have indicated potential for higher bids. Shares of Netflix have declined over 40% since June due to concerns about the Warner Bros deal.

Warner Bros would need to notify Netflix if it decides to re-engage with Paramount. Paramount would need to increase its offer beyond $30 per share. If Warner Bros deems Paramount’s new offer superior, Netflix would have the option to match it. Paramount triggered the auction of Warner Bros with an unsolicited offer last year.

A number of Warner Bros shareholders, including Pentwater Capital Management and Ancora Holdings Group, believe the board should engage with Paramount. However, only 42.3 million shares, less than 2% of outstanding shares, were tendered to Paramount. Both companies are wary of overspending in the deal.

Read more at Yahoo Finance: Warner Bros. Weighs Reopening Sale Negotiations With Paramount