Netflix Receives $2.8 Billion Fee After Warner Bros. Discovery Terminates Merger

Netflix, Inc. announced that its merger agreement with Warner Bros. Discovery (WBD) has been terminated. WBD ended the deal to accept a superior acquisition proposal from Paramount Skydance Corporation (PSKY). As a result of the termination, Netflix has received a substantial termination fee.

Key Details

• Termination Fee: Netflix received a $2.8 billion termination fee, paid by PSKY on behalf of WBD, in accordance with the merger agreement terms.
• Timeline: WBD formally terminated the agreement on February 27, 2026, after notifying Netflix on February 26, 2026, that it had received a "Company Superior Proposal."
• Financing: As a result of the deal's cancellation, the debt and credit agreements Netflix had arranged to finance the acquisition have been automatically terminated.