Paramount Prepares $49 Billion Debt Sale for Warner Bros. Discovery Merger
Paramount Global is preparing a $49 billion debt sale to finance its $110 billion acquisition of Warner Bros. Discovery, following the resolution of legal challenges that had delayed the deal. The financing includes investment-grade bonds and loans totaling about $37.5 billion, with an additional $12 billion in second-lien bonds. Major banks like Bank of America and Citigroup are involved in underwriting the debt package, which is expected to attract a broad investor base beyond typical leveraged buyout markets. Regulatory approvals have been secured across nearly 70 jurisdictions, including from the Federal Communications Commission. The financing structure includes uncapped interest rates that could increase if credit market conditions worsen due to recent rate hikes by central banks like the Fed and ECB. Paramount also recently settled antitrust lawsuits with state attorneys general and the Writers Guild of America, requiring it to release a minimum number of films annually. The merger is under pressure to close soon as Paramount faces daily penalties for delays starting October 1. Once completed, the combined entity will control major Hollywood studios like Paramount Pictures and Warner Bros., along with streaming services such as Paramount+ and HBO Max.
Topics: debt sale merger financing Paramount Global Warner Bros. Discovery acquisition