Paramount Skydance increased its bid for Warner Bros. Discovery (WBD) from $30 per share to $31 per share, WBD said today. Amid a competing offer from Netflix for WBD’s movie studios and streaming businesses, WBD said that Paramount’s new bid “could reasonably be expected to lead to a ‘Company Superior Proposal.’”

Under its revamped offer, Paramount would also pay the $7 billion regulatory termination fee that would arise should a Paramount-WBD merger fail to close due to antitrust regulation.

The company owned by David Ellison also said it would pay $0.25 per share for every day the deal doesn’t close, starting on September 30, rather than the previous start date of December 31.

Paramount previously agreed to pay the $2.8 billion termination fee that WBD would be subject to if it canceled its merger deal with Netflix.

Netflix has offered $27.75 per share for a smaller part of WBD’s overall business. Netflix is looking to pay all-cash for WBD’s film studios, intellectual property, HBO, and streaming services, including HBO Max, but not any of WBD’s other cable channels.

WBD’s board has not decided if Paramount’s revamped offer is better than what Netflix has offered. If the board makes that determination, Netflix will have four days to present a better offer.

It’s unclear if Netflix would be willing to pay more for WBD’s streaming and movie businesses than what it’s already offered. The streaming giant hasn’t commented on Paramount’s new offer yet, but on Friday, co-CEO Ted Sarandos told Variety that the people in charge of Netflix are “super-disciplined buyers.”

“We have a reputation for such so that I’m willing to walk away and let someone else overpay for things. We have a rich history of that,” he added.

Regardless of the ultimate buyer, any WBD merger is expected to face intense regulatory scrutiny, lead to higher subscription prices, and have a lasting impact on Hollywood.