Paramount Secures Financing for Warner Bros. Discovery Acquisition

Paramount Skydance has successfully completed the syndication of a bridge loan facility and entered into permanent financing transactions to support its planned $111 billion acquisition of Warner Bros. Discovery. The financing, which involves a group of 18 lenders, has reduced the total debt commitments from $54 billion to $49 billion. Paramount's new financial structure includes a $5 billion senior secured term loan and a $5 billion revolving credit facility, while a previously disclosed $3.5 billion revolving facility has been eliminated. This restructuring aims to lessen the exposure of the deal's primary lenders, including Citibank, Bank of America, and Apollo Global Management.

ReutersDeadline HollywoodBloomberg

The merger, which was announced in February following a competitive bidding process that included Netflix, is expected to close in the third quarter of 2026, pending regulatory approvals and a shareholder vote scheduled for April 23. Paramount will pay Warner Bros. Discovery shareholders $31 per share in cash as part of the deal.

Paramount raised $49 billion in debt for a $111 billion deal with Warner Bros

The acquisition of Warner Bros. Discovery marks a significant move for Paramount, which is led by CEO David Ellison. The deal follows a heated bidding war, where Paramount ultimately raised its offer to outbid Netflix, which had initially proposed to acquire most of Warner Bros. for $27.75 per share. To secure the necessary financing, Paramount has attracted substantial equity investments from Middle Eastern sovereign wealth funds, including approximately $10 billion from Saudi Arabia’s Public Investment Fund.

Variety Magazine

Andy Gordon, Paramount’s Chief Strategy Officer and Chief Operating Officer, emphasized the importance of the recent financial developments, stating, “Our successful debt syndication and new debt facilities represent another important milestone towards the completion of our acquisition of Warner Bros. Discovery.” He noted that the strong demand for both equity and debt offerings reflects confidence in Paramount's vision to create a leading media and entertainment company.

Variety Magazine

While the acquisition has garnered significant financial backing, some analysts express concerns regarding the high level of debt that will result from the merger. Following the completion of the deal, the combined entity is projected to have net debt of nearly $80 billion, raising questions about the long-term financial sustainability of such a leveraged structure.

Bloomberg

There are discrepancies regarding the exact financial implications of the merger. While Paramount has stated that the total debt will be approximately $80 billion post-merger, some analysts suggest that the complexities of the financing structure may lead to challenges in refinancing, especially if market conditions remain volatile.

Bloomberg

• “Our successful debt syndication and new debt facilities represent another important milestone towards the completion of our acquisition of Warner Bros. Discovery. This progress follows closely on the heels of our equity syndication, which diversifies our shareholder base and yields potential for strategic and commercial opportunities,” — Andy Gordon, Chief Strategy Officer and COO, Paramount Skydance

Deadline Hollywood

• “The strong demand for both our equity and debt offerings underscores confidence in our vision and ability to deliver greater value by bringing together these two storied companies — creating a leading media and entertainment company that strengthens competition, better serves the creative community and delivers even more compelling stories to audiences.” — Andy Gordon, Chief Strategy Officer and COO, Paramount Skydance

Variety Magazine

This acquisition is poised to reshape the media landscape, with Paramount aiming to leverage the combined assets of both companies to enhance competition and deliver compelling content to audiences.

Variety Magazine