Paramount Seeks $7.5 Billion Loan to Finance Warner Bros. Discovery Takeover

Paramount Skydance is moving forward with financing for its landmark acquisition of Warner Bros Discovery, launching a syndication for a proposed $7.5 billion senior secured term loan. The debt raise, announced Thursday, is a critical step in funding the $110 billion deal that is set to reshape the media landscape.

Financing the Mega-Merger

The company is seeking to raise the incremental term B facility, subject to market and other conditions, according to a statement reported by Reuters. This loan represents just one component of a much larger and more complex financing strategy.

Key details of the financing plan include:

• An intention to raise approximately $44.4 billion of additional secured debt, on top of the proposed term loan and previously announced financings.
• Proceeds will be used, along with cash on hand and prior equity financing, to fund the Warner Bros Discovery purchase and refinance some existing debt.
• The combined entity is projected to carry a significant debt load of about $80 billion once the transaction is finalized.

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Clearing Final Hurdles

The timing of the loan launch is significant, coming just days after Paramount settled litigation that represented the final domestic obstacle to the merger. The company reached an agreement with a California-led coalition of states and the Writers Guild of America.

As part of that settlement, Paramount agreed to several concessions to secure approval. These included commitments to increase U.S. film production and to establish an editorial-independence board for its news assets, CBS and CNN, thereby avoiding a forced divestiture of key properties.