Why did Warner Bros. Discovery terminate its merger agreement with Netflix?

Warner Bros. Discovery terminated its merger agreement with Netflix to enter into a new agreement with PSKY, which presented a superior proposal.

How much was the termination fee paid to Netflix?

The termination fee paid to Netflix was $2.8 billion.

When was the merger agreement between WBD and Netflix terminated?

The merger agreement between WBD and Netflix was terminated on February 27, 2026.

Home / Business and Economy / Netflix Gets $2.8B Payout as WBD Deal Dies

Netflix Gets $2.8B Payout as WBD Deal Dies

27 Feb

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Summary

Netflix received $2.8 billion from Paramount's offer.
Warner Bros. Discovery terminated its merger agreement with Netflix.
The termination fee was paid to Netflix on February 27, 2026.

Netflix Gets $2.8B Payout as WBD Deal Dies

As of February 27, 2026, Warner Bros. Discovery (WBD) has officially terminated its merger agreement with Netflix. This decision was prompted by a superior proposal from PSKY, an entity linked to David Ellison's company, Paramount.

Netflix confirmed in an SEC filing that WBD provided notice of termination on February 27, 2026. This move was to allow WBD to enter into a new merger agreement with PSKY.

As a direct consequence of this termination, PSKY, on behalf of WBD, paid Netflix a significant termination fee of $2.8 billion. This payment was made in accordance with the terms outlined in the original merger agreement between WBD and Netflix.

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