Paramount seeks $7.5 billion debt raise for Warner Bros. Discovery acquisition

Key facts

• Paramount Global is seeking to raise $7.5 billion through a senior secured term loan.
• The loan is part of a financing package for the acquisition of Warner Bros. Discovery.
• Paramount intends to raise an additional $44.4 billion of secured debt.
• The combined company is expected to have approximately $80 billion in debt post-acquisition.
• Paramount agreed to increase U.S. film production and establish an editorial-independence board for CBS and CNN.

Paramount Global has initiated the process to raise $7.5 billion through a senior secured term loan, as part of a larger financing strategy for its acquisition of Warner Bros. Discovery. This move follows Paramount's resolution of litigation with a coalition of states led by California and the Writers Guild of America, which had presented potential obstacles to the deal. The company also plans to secure an additional $44.4 billion in secured debt. Upon completion, the merged entity is projected to carry approximately $80 billion in debt. As part of the agreement, Paramount has committed to increasing its U.S. film production and establishing an editorial-independence board for CBS and CNN, thereby avoiding the forced sale of assets like CNN and its film franchises.