Paramount Skydance Corp. launched a massive $44.4 billion debt offering on September 28, 2026, to finance its acquisition of Warner Bros. Discovery (WBD). This includes approximately $32 billion in investment-grade debt, issued in both dollars and euros, and $12.4 billion in higher-interest rate, high-yield bonds. Bank of America and Citigroup are leading the marketing efforts, and initial demand has reportedly been sufficient to cover the offering. This debt package is part of a larger $51.9 billion financing plan that also includes a $7.5 billion seven-year Term B loan that began marketing last week. A $49 billion bridge loan is also in place as contingent financing.
The timing of the merger's closing remains uncertain, as it hinges on a federal judge's approval of a settlement for an antitrust lawsuit filed by 12 State Attorneys General. U.S. District Judge Araceli Martinez-Olguin declined to approve the settlement at a September 24 hearing, setting aside time for opposition briefs, which were due today. Paramount has indicated an October 7 marker for the debt offering, but the actual closing date is dependent on the satisfaction of all merger agreement conditions.
Paramount will utilize the proceeds from this debt offering, along with cash on hand, borrowings from previously announced term loan financings, and equity financing, to fund the WBD purchase. The total cash consideration payable to WBD common stockholders is estimated at $78 billion, including a $31 per share payout and approximately $1.1 billion for vested WBD equity awards. The equity funding, totaling up to $46.7 billion, is being provided by various parties including sovereign wealth funds from Saudi Arabia, Abu Dhabi, and Qatar, and U.S. investment bank LionTree, with the Lawrence J. Ellison Revocable Trust backstopping the financing. The combined company is expected to carry over $80 billion in long-term debt, incurring over $6 billion in annual interest expenses, a figure that has drawn criticism from deal opponents. Paramount aims to achieve $6 billion in synergies across the combined entities to offset these costs.
