Netflix receives $2.8 billion termination fee after Warner Bros. Discovery deal collapse
Change
Netflix received a $2.8 billion termination fee on February 27, 2026 after Warner Bros. Discovery terminated their $83 billion merger agreement to accept a superior proposal from Paramount Skydance, with Paramount Skydance paying the fee on WBD's behalf.
Why it matters
Deal teams and financing parties can no longer treat Netflix as an active bidder for Warner Bros. Discovery because the merger agreement has been validly terminated and the contractual breakup payment completed. Advisors and bidders must therefore reconfigure valuation, financing and integration plans around Paramount Skydance's accepted offer rather than preparing counteroffers from Netflix.
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