So, here's a fun twist in the streaming wars. Remember when Netflix Inc. (NFLX) agreed to buy a big chunk of Warner Bros. Discovery Inc. (WBD)? Well, it turns out someone else might want to crash the party. Netflix shares ticked higher after the bell on Tuesday, and the reason is a classic corporate drama: a rival bidder has shown up with what might be a better offer.

Warner Bros. Discovery just got a fresh proposal from Paramount Skydance Corp (PSKY). The company's board took a look and decided this revised pitch could reasonably be expected to lead to a "company superior proposal" compared to the deal already on the table with Netflix. That's corporate-speak for "this new offer looks pretty good, maybe even better than what we've got."

Let's break down the numbers, because that's where things get interesting. Paramount's new offer comes in at $31 per share in cash. That's notably higher than the $27.75 per share Netflix agreed to pay back in December for Warner Bros. Discovery's film and TV studios and HBO business. But it's not just about the sticker price. The proposal also includes a hefty $7 billion regulatory termination fee and a separate $2.8 billion fee that Warner Bros. would have to pay Netflix to walk away from their existing agreement. Those are big numbers designed to make the offer look serious and cover the cost of breaking up with Netflix.

This has been a long-running saga. Netflix and Paramount have been duking it out for months, trying to snap up these prized media assets. Now, with this new bid, the game is back on. Warner Bros. Discovery says it will now "engage further" with Paramount Skydance to figure out if this new proposal is actually superior. If they decide it is, the ball goes back into Netflix's court. The streaming giant would then have four business days to come back with any revisions to its own agreement to try and keep the deal alive.

For now, the original merger pact with Netflix is still the official deal. It's expected to close in the third quarter of 2026. But the arrival of a potentially sweeter offer changes the calculus. Investors seemed to react positively to the news of a bidding contest. Netflix shares were up 1.23% in after-hours trading, changing hands at $78.99.

So, what happens next? Warner Bros. Discovery gets to play two suitors against each other, which is usually a good position to be in. Netflix has to decide if it wants to pay more to secure the assets or risk losing them to a competitor. And Paramount Skydance has thrown a serious wrench into the works, proving it's still very much in the fight. It's a high-stakes reminder that in the media merger game, no deal is done until the ink is dry and the check clears.