Paramount Skydance nears $110B Warner deal, faces debt exceeding $87B
Business
Paramount Skydance is about to close its massive $110 billion takeover of Warner Bros. Discovery, finally clearing legal hurdles.
But making this deal happen means selling about $42 billion of bonds and $9.5 billion of loans, which will seriously ramp up the company's yearly interest payments.
After the buyout, it will have more than $87 billion of debt.
CEO David Ellison seeks $6B cuts
With annual debt payments set to jump by as much as $500 million, CEO David Ellison wants to slash costs by $6 billion a year within three years and might even sell off some assets.
Still, not all investors are convinced: some are holding back because of the execution risk, especially with today's tough financial climate.