So here's how you finance a media megamerger in 2026. Paramount Skydance (PSKY) has locked in the permanent funding for its takeover of Warner Bros. Discovery (WBD), and in the process managed to shave $5 billion off its debt commitments. According to regulatory filings on Thursday, what was originally a $54 billion debt load is now down to $49 billion.
How'd they do it? By getting 18 banks together to syndicate a bridge loan and finalize $5 billion in senior term loans plus a $5 billion revolving credit facility. They also dropped a separate $3.5 billion credit line along the way. The loans come with a first-priority claim on all assets—that means Paramount Global, Skydance Media, and Warner Bros. itself, once the merger closes.
This is shaping up to be one of the largest debt packages of the year. The combined company is expected to carry nearly $80 billion in net debt. For context, Paramount had about $10.36 billion in net debt last year, while Warner Bros. Discovery was sitting on roughly $29 billion. So yeah, they're putting together quite the balance sheet.
The David Ellison-led Paramount announced plans to buy Warner Bros. Discovery back in February, after Netflix (NFLX) decided not to increase its bid. The deal is heading for a Q3 close with what will likely be one of 2026's largest debt financings. Earlier this week, Paramount Skydance also secured $24 billion in equity commitments linked to the potential takeover.
Two sovereign-wealth funds are reportedly involved in the financing: Qatar Investment Authority and Abu Dhabi's L'imad Holding Co. The deal could close as soon as the end of July, which in merger timeline terms is basically tomorrow.
Meanwhile, ISS has given its blessing to the Warner Bros.-Paramount deal but took issue with CEO David Zaslav's $886 million 'extraordinary' golden parachute. Executives are set to receive a total of $1.35 billion after the acquisition closes, including an estimated "excise tax grossup" of $335 million for Zaslav—money he'd get solely because the deal happened. What role Zaslav will play in the merged company remains unclear.
