Paramount Skydance Plans $49 Billion Debt Sale to Fund $110 Billion Warner Bros. Discovery Merger

Paramount Skydance Corporation is preparing a $49 billion debt sale to finance its $110 billion acquisition of Warner Bros. Discovery after settling lawsuits that had blocked the deal, Bloomberg reported. Bank of America, Citigroup and Apollo Global Management, which underwrote the package earlier this year, are contacting investors, with a formal launch expected within weeks. The financing comprises about $30 billion of investment-grade bonds, $7.5 billion of investment-grade loans and roughly $12 billion of second-lien bonds, targeting a wider dollar and euro investor base than typical leveraged buyouts. Regulators in nearly 70 jurisdictions and the Federal Communications Commission have approved the deal and financing. The debt carries uncapped interest rates, letting lenders charge more if credit conditions worsen. Paramount settled on September 21, 2026, with 12 state attorneys general and the Writers Guild of America, resolving an antitrust suit led by California Attorney General Rob Bonta. The settlement requires at least 30 theatrical releases annually in the first two years, rising to 32, plus $1.5 billion above 2025 domestic film production over five years. Paramount owes Warner Bros. Discovery shareholders roughly $7 million per day from October 1, 2026, until closing. It had targeted a third-quarter close.