Netflix backed out of its deal to acquire Warner Bros. Discovery’s (WBD’s) streaming and movie studios businesses on Thursday night. After increasing its bid for all of WBD by $1 per share on Tuesday, Paramount Skydance is poised to become the new owner of WBD, including Game of Thrones, DC Comics, and other IP, as well as the HBO Max streaming service and cable channels CNN and TBS.

Netflix and WBD announced merger intentions on December 5. Netflix was going to pay an equity value of $72 billion, or an approximate total enterprise value of $82.7 billion, for part of WBD. At the time, NBC News reported that WBD’s total market value was $60 billion.

But Paramount has reportedly been eyeing WBD for years and followed December's merger announcement with an aggressive hostile takeover bid. On Tuesday, in addition to raising its offer to buy all of WBD, Paramount also agreed to pay a $7 billion regulatory termination fee should a Paramount-WBD merger fail to close due to antitrust regulation, as well as a $0.25 per share ticking fee for every quarter that the deal doesn’t close, starting on September 30.

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