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Warner Bros. Discovery said Tuesday it will reopen takeover talks with Paramount Skydance after the bidder raised its offer to $31 per share, topping its earlier $30 proposal and putting new pressure on a rival deal with Netflix.

The renewed discussions come after Netflix granted Warner a seven-day waiver to explore whether Paramount can submit a stronger and binding offer.

Warner's board said it will use this short window to address what it called "deficiencies" in Paramount's prior bids and to clarify key terms.

A senior Paramount representative told a member of Warner's board that the company is willing to increase its offer to $31 per share and could potentially improve it further.

Paramount has argued that its proposal is financially superior to Netflix's $27.75 per share deal and more likely to gain approval from federal antitrust regulators, CBS News reported.

Warner CEO David Zaslav said the company has been clear about the issues in Paramount's earlier proposals.

"We are engaging with [Paramount Skydance] now to determine whether they can deliver an actionable, binding proposal that provides superior value and certainty for WBD shareholders through their best and final offer," Zaslav said in a statement.

Netflix's $72 Billion Deal Targets Warner Studio

Under the existing agreement with Netflix, the streaming giant would acquire Warner's movie studio and streaming assets in a deal valued at $72 billion.

The studio's film library includes major franchises such as "Harry Potter," "The Matrix," and "Casablanca." Including debt, the enterprise value of the Netflix deal reaches about $83 billion.

Paramount's approach is broader. It has proposed buying all of Warner Bros. Discovery, including cable networks like CNN, TBS and TNT. According to AP News, its overall bid, including debt, stands at about $108 billion.

Despite reopening talks, Warner's board continues to recommend that shareholders vote in favor of the Netflix transaction.

A shareholder meeting is scheduled for March 20. Netflix said Warner has until Feb. 23 to negotiate with Paramount before the waiver expires.

In a statement, Netflix expressed confidence in its offer, saying a combined Netflix and Warner would "strengthen the entertainment industry, preserve choice and value for consumers and give creators more opportunities." The company added that it believes its deal will pass antitrust review.

Investors reacted quickly. Warner shares rose more than 2% in early trading, while Paramount gained over 6%. Netflix stock dipped slightly.