Netflix's $5.8B breakup fee in Warner Bros. Discovery deal
Netflix just made a bold move to buy Warner Bros. Discovery for $72 billion, but there's a huge catch: if the deal falls through or gets blocked by regulators, Netflix owes a massive $5.8 billion breakup fee—one of the biggest ever seen in corporate deals.
The deal comes as Paramount jumps into the mix with its own competing offer.
Paramount steps up with bigger bid
Paramount isn't sitting back—they've offered an all-cash $108.4 billion deal that would bring together big names like CNN (from Warner Bros. Discovery) and Paramount Pictures (already owned by Paramount), possibly making it smoother with regulators since there are fewer antitrust headaches.
Their bid also comes with a $5 billion breakup fee, showing just how serious they are.
Warner Bros. Discovery adds another twist
To keep things interesting, Warner Bros. Discovery has set a $2.8 billion reverse breakup fee if they choose another buyer instead of Netflix or Paramount, adding even more drama to this high-stakes streaming showdown.