$44 billion borrowing plan powers Paramount’s push to acquire Warner Bros.
Paramount is pushing to raise a hefty debt offering to bankroll its Warner Bros. Discovery merger — and the price tag might make you blink.
In an SEC filing, Paramount –Skydance laid out a plan to raise $44 billion in new debt to help fund its proposed $110 billion combination with Warner Bros. Discovery. The package splits into $32 billion in investment‑grade debt and $12.4 billion in high‑yield bonds, to be paired with outside investor money and existing cash.
If the deal closes, the merged company would carry roughly $80 billion in total debt, according to TheWrap. David Ellison has said the combined company could generate about $6 billion in cost “synergies,” a target that typically reflects consolidation across overlapping divisions.
What the states got
California and 11 other states that sued to block the deal have reached a settlement in principle, Bloomberg reported, with terms that also address concerns raised by the Writers Guild of America. As part of the agreement, the company committed to several concrete guardrails:
- Set up independent editorial boards for CBS and CNN.
- Distribute at least 30 films theatrically each year.
- Face significant penalties if those commitments are not met.
“We have complete clearance for this merger and look forward to putting these commitments into action. ”
That statement came from David Ellison in a press release, as reported by the BBC. Even so, the multistate settlement still needs sign‑off from U.S. District Judge Araceli Martínez‑Olguín before it takes effect.
How they’ll pay for it
The new borrowing would be one part of the financing stack alongside equity from investors and company cash to complete the $110 billion transaction. The court’s decision on the states’ settlement will determine the next step in the timeline.