Debt jumps $7.5B at Paramount Skydance, with $111B Warner Bros. Discovery merger ahead
Paramount Skydance is lining up more cash as its ambitious Warner Bros. Discovery deal heads into yet another expensive phase.
The funding stack behind this merger just swelled again: Paramount Skydance is taking out another $7.5 billion loan to help pay for its planned purchase of Warner Bros. Discovery, a deal pegged at roughly $111 billion. The new cash is a senior secured Term Loan B, layered on top of an already pricey tab that includes a $2.8 billion termination fee tied to an earlier Netflix deal.
This latest borrowing is only one slice of a very big pie. Paramount Skydance also plans to raise about $44.4 billion in additional secured debt — a mix of investment‑grade and high‑yield bonds — alongside previously committed financing.
Money math, fast
- Deal value: about $111 billion (enterprise value)
- New loan: $7.5 billion Term Loan B
- More borrowing planned: roughly $44.4 billion in secured debt (bonds and more)
- Projected net debt after closing: $77.2–$80 billion
- Proceeds: fund the purchase and pay down certain high‑interest debt
- Planned new name for the combined company: “WarnerMount”
Why the rush
A major legal roadblock just came off the board. Paramount Skydance settled an antitrust lawsuit brought by 12 state attorneys general, led by California, and the Writers Guild of America, avoiding a trial that could have pushed the merger into mid‑2027. With litigation resolved and financing lining up, there’s a hard deadline looming.
$7 million per day — that’s the fee owed to Warner Bros. Discovery shareholders if the deal isn’t closed by October 1.
That ticking meter helps explain the scramble to lock down the extra $7.5 billion. Paramount Skydance has also brought in Elon Musk to help syndicate equity investors, signaling the company still wants to balance the pile with fresh cash that isn’t debt.
If the merger closes as pitched, the combined company would start life carrying $77.2 billion to $80 billion in net debt. Paramount Skydance says part of the new money will also retire some of its higher‑interest IOUs.
Next up: finalize the new loan, move the broader bond sales to market, clear remaining approvals — and hit that October 1 finish line.