Netflix has significant cash reserves and could raise its bid for HBO Max owner Warner Bros Discovery if rival Paramount Skydance increases its offer, according to sources familiar with the matter. The two media companies are competing fiercely over Warner Bros and its prized franchises, including Harry Potter, Game of Thrones, DC Comics, and Superman.

While Warner Bros is moving ahead with a shareholder vote on March 20 regarding Netflix's proposal, it has given Paramount a week to submit a more attractive bid. Netflix has offered $27.75 per share, totaling $82.7 billion, for Warner Bros’ studio and streaming operations, whereas Paramount has proposed $30 per share, or $108.4 billion, for the entire company, including Discovery Global, which owns CNN, HGTV, and other TV networks. Netflix and Warner Bros declined to comment. Sources noted that Netflix, the company behind Stranger Things, has considerable financial flexibility, holding about $9.03 billion in cash and cash equivalents as of December 31, allowing it to potentially increase its offer.

Warner Bros rejected Paramount’s latest hostile takeover bid on Tuesday but gave the studio until the end of Monday to present a “best and final” offer. Paramount had indicated an informal $31 per share bid. “Netflix appears to be leading, but that could change quickly,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown. He noted that price will likely determine the outcome, adding that funding and regulatory concerns become secondary at a high enough valuation. Britzman expects Netflix to counter any improved Paramount offer, though the final decision may hinge on how much the board and shareholders value the network assets that Netflix would not acquire.

Paramount stated it would continue pursuing its tender offer, oppose the “inferior” Netflix deal, and still plans to nominate directors at Warner Bros’ upcoming annual meeting. Under the merger agreement, Netflix can match any higher offer from Paramount. Warner Bros Chairman Samuel DiPiazza Jr. and CEO David Zaslav reaffirmed their commitment to Netflix in a letter to Paramount’s board.

Paren Knadjian of Eisner Advisory Group said Paramount’s persistence suggests confidence in winning, but the Warner Bros board remains concerned about Paramount’s financing, timing, and regulatory approvals, which weaken the appeal of its offer despite a higher headline price. Paramount had proposed compensating Warner Bros investors for any delay beyond this year and covering the $2.8 billion breakup fee if Warner Bros withdrew from Netflix’s deal. However, the board rejected these terms, citing unresolved issues such as responsibility for a $1.5 billion junior lien financing fee, contingencies if debt financing fails, and the certainty of equity funding led by Larry Ellison.