ISTANBUL

Netflix announced the termination of its merger agreement with Warner Bros. Discovery as the entertainment company accepted a superior proposal from Paramount Skydance Corporation.

Warner Bros. Discovery notified the streaming platform on February 26 that a revised proposal from Paramount Skydance Corporation constituted a superior offer.

Netflix waived its right to negotiate further and confirmed it chose not to revise its previous offer, according to its statement to the US Securities and Exchange Commission (SEC) on Friday.

Warner Bros. Discovery officially terminated the agreement on February 27 to proceed with the rival transaction.

Paramount Skydance Corporation paid a $2.8 billion termination fee to Netflix on behalf of Warner Bros. Discovery.

Netflix and Warner Bros. Discovery originally entered an amended merger agreement on January 19.

The initial agreement outlined a plan for Netflix to acquire the streaming and studio operations of Warner Bros. Discovery.

Warner Bros. Discovery intended to separate its global linear networks business before completing the acquisition.

The cancellation of the merger automatically ended four different financial agreements Netflix secured for the transaction.

These terminated financial arrangements featured a bridge commitment letter and a senior unsecured revolving credit agreement.