Paramount seeks $7.5 billion loan tranche to fund Warner Bros. Discovery merger
Paramount Skydance announced a plan to raise $7.5 billion in senior secured term-B loans, adding to its broader $44.4 billion debt push to close the Warner Bros. Discovery acquisition.
Paramount Skydance disclosed a syndication effort to secure a senior secured incremental tranche of term-B loans totaling $7.5 billion. This financing is part of a larger strategy to raise roughly $44.4 billion in secured debt, which will support the $111 billion purchase of Warner Bros. Discovery and enable repayment of certain existing debt.
Morgan Stanley analysts estimate that, on a pro-forma basis at the end of 2026, the merged company will hold about $77.2 billion of net debt, a number that could increase once the new loans are accounted for. The merger is awaiting judicial approval of a consent decree after a settlement with 12 state attorneys general, with closure expected within weeks. Larry Ellison has personally guaranteed $46.7 billion in equity for the takeover, while sovereign wealth funds from Saudi Arabia, Qatar and the United Arab Emirates have pledged $24 billion, which would give them a 38.5% stake in the combined firm.
Why it matters
The financing moves bring the massive Paramount-Warner Bros. merger closer to completion, reshaping the media landscape and adding huge debt to the market.
How this story developed
- Sep 8 Paramount seeks $1.88 billion bond from states and WGA over Warner Bros. deal delay
- Sep 17 The Justice Department filed a statement of interest seeking a $1.88 billion bond from the states.
- Sep 21 A settlement with twelve states was reached, removing a key antitrust obstacle.
- Sep 21 Settlement adds film‑output quotas, a $300 million annual domestic production commitment, and an editorial independence board.
In this story
Related stories
18 in this thread