Netflix on Thursday signaled it was backing away from its offer to buy Warner Bros. Discovery’s streaming and studio assets, saying ‌the deal was no longer financially attractive after Paramount Skydance revised its offer for the coveted Hollywood studio to a $31-a-share offer.

Shares of Netflix rose around 10 per cent in extended trading.

“We’ve always been ​disciplined, and at the price required to match ​Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance ​bid,” Netflix said in a statement.

Warner Bros. Discovery said ⁠earlier in the ⁠day that Paramount’s revised $31-a-share offer was ‌superior to its existing deal with Netflix.

Netflix had earlier this month granted Warner Bros. a seven-day waiver to seek a “best and final offer” from Paramount for the company.

Netflix, which was looking to buy ⁠Warner Bros.’ streaming and studio assets, agreed in December to a deal valued at $27.75 per share. The company had said its offer, along with a ‌planned divestiture of Warner Bros.’ cable assets, would deliver a greater shareholder value.

In its revised bid, Paramount raised the termination fee it would pay should the deal fail to gain regulatory approval to $7 billion US from $5.8 ​billion US.

Paramount said it welcomed the Warner Bros. board’s unanimous reaffirmation that its bid represents the stronger ⁠offer.

The Ellison Trust is committing $45.7 billion US in equity, up from $43.6 billion US previously, ⁠backed by Larry Ellison and including any additional funds needed to satisfy ⁠Paramount’s bank ⁠solvency requirements, the firm ​said.

Bank of America Merrill Lynch, Citi and Apollo are providing $57.5 billion US in ​debt financing, increased from ⁠an earlier $54 billion US commitment.

Activist investor Ancora Holdings, which owns a small stake in Warner Bros., has also stepped up pressure on the HBO owner by saying the company did not adequately engage with Paramount.