Netflix's $5.8B Warner Bros. breakup fee among largest ever

• Netflix's $72 billion acquisition of Warner Bros. Discovery includes a $5.8 billion breakup fee if the deal fails or lacks regulatory approval.
• The $5.8 billion fee represents 8% of the deal's equity value, significantly higher than the 2024 average of 2.4%.
• This high breakup fee signals Netflix's confidence in obtaining global antitrust approval.
• Warner Bros. Discovery would pay a $2.8 billion reverse breakup fee if its shareholders reject the deal.
• A rival suitor, Paramount Skydance Corp., had offered a $5 billion breakup fee in its proposal.

Why It Matters: Netflix's huge breakup fee shows high stakes in major corporate mergers.