Paramount to Raise $7.5 Billion in Debt to Help Fund Warner Bros. Discovery Merger

Paramount Skydance has announced plans to raise $7.5 billion in debt as part of a syndication to fund the $110 billion merger with Warner Bros. Discovery. The $44.4 billion in additional secured debt, combined with previously announced financings, is subject to market and other conditions. Major banks like Bank of America, Citigroup, and Apollo have already committed to providing $54 billion of the financing.

In contrast, three Middle Eastern sovereign wealth funds and LionTree Investment Fund have pledged $47 billion in equity financing, backed by the Ellison family and RedBird Capital Partners. CEO David Ellison made an "irrevocable personal guarantee" for the equity financing. The combined company is currently expected to have around $80 billion in debt, and the exact timing of the loans comes as Paramount settled antitrust litigation with 12 state attorneys general.

The settlement includes commitments to release at least 30 films per year and establish an editorial board to oversee CNN and CBS News. A hearing to address concerns regarding the settlement will be held on Thursday at 11 a.m. PT. Groups opposing the merger, such as the Block the Merger coalition and The League of United Latin American Citizens (LULAC), have requested a formal court hearing to address their objections.