Warner Bros. Discovery terminates Netflix deal; Paramount pays $2.8B fee

On February 27, 2026, Warner Bros. Discovery notified Netflix that it had terminated their merger agreement to sign with Paramount Skydance. Paramount paid the $2.8B termination fee owed to Netflix on WBD's behalf. Netflix recorded the fee in interest and other income in the first quarter, which lifted reported net income in Q1 2026.

• Termination notice dated February 27, 2026
• Paramount Skydance paid the $2.8B termination fee on behalf of WBD
• Fee recorded in interest and other income for the quarter ended March 31, 2026