Warner Bros Discovery (WBD) is thinking about reopening talks with Paramount Skydance. This move could start a bidding war with Netflix for the Hollywood studio. Paramount is trying a hostile $108.4 billion cash takeover directly with WBD shareholders. It aims to stop the Netflix deal, reported Bloomberg. Paramount offered to cover a $2.8 billion fee owed to Netflix if WBD backs out. It also plans to help refinance billions to remove $1.5 billion in costs. In addition, Paramount added a "ticking fee" of about $650 million in cash per quarter if the deal is not done by year-end. To boost its influence, Paramount hired Rene Augustine, a former Trump administration lawyer, as senior VP of global public policy. David Ellison, Paramount’s chair and CEO, said their effort shows “strong and unwavering commitment to delivering the full value WBD shareholders deserve.” WBD said it is reviewing Paramount’s changed offer. The company feels pressure from smaller shareholders like Pentwater Capital Management and Ancora Holdings Group to consider Paramount. But less than 2% of WBD’s shares back Paramount’s hostile bid so far. Paramount has already twice extended its deadline, now set for February 20. If WBD restarts talks with Paramount, it must first inform Netflix. This could lead to sweeter offers from both sides. In January, Netflix improved its bid by making it an all-cash offer. Netflix wants to buy WBD’s studio and streaming businesses, including Warner Bros, the home of Harry Potter, Superman, and Batman. It also wants HBO with shows like Game of Thrones and Succession. Netflix will not take WBD’s global networks like CNN and Cartoon Network, which are set to be spun off with investors keeping a stake. Paramount wants to buy the entire media group. WBD’s board is still debating which offer is best but has not made a decision, Bloomberg said. WBD plans a special shareholders’ meeting in April to vote on the Netflix merger.