Paramount-Warner Bros. Merger Faces $77 Billion Debt Burden, Claim Analysts
Morgan Stanley analysts say the combined company could top 240 million streaming subscribers by 2030, but $49 billion in financing will test the deal.
- On Monday, Paramount Skydance Corporation settled antitrust lawsuits with 12 state attorneys general and the Writers Guild of America, clearing the way for its $110 billion acquisition of Warner Bros. Discovery.
- California Attorney General Rob Bonta and Connecticut Attorney General William Tong led the antitrust challenge, which Paramount settled by agreeing to behavioral commitments including at least 30 films annually and editorial independence protections.
- Bankers are preparing a $49 billion debt sale consisting of $30 billion in investment-grade bonds, $7.5 billion in loans, and $12 billion in second-lien bonds, with a formal launch expected within weeks, Bloomberg reported.
- Morgan Stanley analysts Sean Diffley and Daniel Duran called the outcome 'a clear positive,' noting the merged entity could save more than $6 billion while carrying a $77.2 billion net debt load at year-end 2026.
- Combining HBO Max and Paramount+ positions the company to rival Disney and Amazon in streaming, with analysts projecting the consolidated platform could reach more than 240 million subscribers by 2030.
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The behavior of the securities confirms the asymmetric nature of the transaction, notes XTB. Warner Bros converged almost entirely to the purchase price so it decreased the probability of blocking, while Paramount failed to sustain the initial rise, since the conclusion of the business transfers to the buyer the economic risks that were suspended during the regulatory process.
Paramount has reached a settlement with 12 U.S. states over its antitrust lawsuit against its acquisition of Warner Bros. Discovery, removing one of the last major hurdles to a deal that would reshape Hollywood and the global streaming market. The deal still needs to be approved by the courts. If finalized, the David Ellison-led company would control some of the most recognizable brands in the entertainment business: Paramount Pictures, Warner B…
«Today, billionaires have again resorted to bribery, censorship and intimidation to make their way to the top»
Closure of merger will drag a debt of 77 thousand mdd for Warner Bros. and Paramount, Wall Street analysts foresee it.
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