COMPETITIVE · GLOBAL
WBD terminates Netflix merger agreement; Netflix receives $2.8B breakup fee
Change
Netflix said Friday it has officially received a $2.8 billion termination fee from Warner Bros. Discovery after WBD formally ended their previously announced merger agreement upon accepting a “superior proposal” from Paramount Skydance.
Why Now
Netflix disclosed that it has received the $2.8 billion termination fee following WBD’s formal withdrawal from their merger agreement. The excerpt attributes the termination trigger to WBD’s acceptance of a “superior proposal” from Paramount Skydance. Paramount Skydance had made a hostile tender offer and later revised its proposal, which the WBD board accepted. The excerpt states the merger agreement provided Netflix four days to submit a counteroffer. Netflix did not submit a counteroffer and stated the acquisition was not essential at any cost.
Impact
- • $2.8 billion breakup fee payment to Netflix has been executed.
- • WBD has ended the previously announced merger agreement with Netflix.
- • WBD’s board acceptance of Paramount Skydance’s proposal has supplanted the Netflix transaction.
- • Netflix’s contractual counteroffer window referenced in the excerpt was not used.
Who Recalculates
- • Streaming platforms
- • Media company boards and executives
- • M&A legal and advisory teams
- • Equity investors in media companies
Source
Topics
Business & Markets Mergers & Acquisitions Technology & Innovation Big Tech Finance & Banking Capital Markets