Chris Palmieri

The Warner Brothers board is not completely convinced that they're there.

They maybe think they can get a little bit more out of Paramount.

It certainly seems that way.

This is an extraordinary offer here.

Paramount's not only raised the price $31 a share, they raised the termination fee.

If they don't get their deal done due to regulatory concerns, they're also agreeing to pay $2.8 billion to Netflix to get them out of that deal.

So it's just a real indicator of how much Paramount wants this.

a component about $4 out of the $27.75 that was going to be in Netflix stock.

Netflix stock has taken a beating since this whole takeover war began, lost about a quarter of its value.

And Netflix sees this as an opportunity to really just sort of strengthen the terms because they're competing against an all-cash offer from Paramount.

The big takeaway here is that Netflix is in this.

There's been a question mark.

They were sort of a surprise bidder to begin with.

This isn't their thing, doing these big acquisitions.

And so people wondered, how committed are they to this?

This is a signal that they're still committed to doing this deal.

Paramount from here, as they're trying to get more details about the valuation process that Warner Brothers went through public,

They're continuing with their tender offer.

If it comes down to a shareholder vote over the deal, they'll oppose that.

If it comes down to an annual meeting, they will propose an alternative slate.