Netflix Says Paramount Has Paid $2.8 Billion Breakup Fee for Warner Bros. Discovery Deal

 Netflix has become a bit more wealthy after allowing Warner Bros. Discovery to move on.

On Friday, Netflix confirmed that Paramount Skydance has given them the $2.8 billion fee they were promised, following Paramount's win in their competition for Warner Bros.

 Discovery. This is pending an official vote and regulatory approval.

According to a filing with the SEC, Warner Bros.

 Discovery informed Netflix that they had ended the merger agreement as per the terms, to join with Paramount Skydance for a better deal.

Once the agreement ended, Paramount Skydance paid the $2.8 billion fee that Netflix was due under the original merger agreement.

On Thursday afternoon, Netflix officially said they would not raise their $83 billion offer to buy Warner Bros. and HBO Max from Discovery.

 This came after Warner Bros. Discovery's board said Paramount Skydance's new offer of $111 billion for the whole company, including its linear channels, was a better deal than the one they had with Netflix.

The original deal, which would have included buying Warner Bros. and HBO Max, was worth nearly $83 billion.

 Paramount's latest offer, made on February 24, was about $111 billion for the whole of Warner Bros. Discovery, including its traditional TV channels.

Netflix's quick decision surprised Hollywood because they had only four business days, until Wednesday, March 4 at 11:59 p.m. ET, to come up with a new offer to keep the deal.

In a joint statement released Thursday, less than two hours after Warner Bros.

 Discovery announced the board's decision, Netflix co-CEOs Ted Sarandos and Greg Peters said, "The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, we've always been disciplined, and at the price required to match Paramount Skydance's latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid."

They also added, "This transaction was always a 'nice to have' at the right price, not a 'must have' at any price.

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