Netflix's $5.8B Warner Breakup Fee Among Largest Ever

• Netflix's $72 billion acquisition of Warner Bros. Discovery includes a $5.8 billion breakup fee.
• This $5.8 billion fee is 8% of the deal's equity value, significantly higher than the 2024 average of 2.4%.
• The large breakup fee signals Netflix's confidence in regulatory approval and reflects a heated bidding war for Warner Bros. Discovery.
• Warner Bros. Discovery would pay a $2.8 billion reverse breakup fee if shareholders reject the deal or accept a rival offer.
• The article highlights other major M&A breakup fees, including AOL/Time Warner ($5.4B) and Verizon/Vodafone ($10B).

Why It Matters: Netflix's massive breakup fee signals high confidence in its Warner Bros. acquisition.