Paramount seeks another $7.5 billion as Warner Bros mega-deal hits delay

Paramount Skydance is seeking another $7.5 billion in borrowing to help finance its blockbuster takeover of Warner Bros Discovery, as the Hollywood mega-merger faces a fresh delay in court.

The entertainment group led by David Ellison said on Thursday (24.09.26) it had launched the syndication of a proposed $7.5 billion senior secured term loan, with the money earmarked for its acquisition of Warner Bros Discovery and repayment of existing debt.

Paramount said it also intends to raise about $44.4 billion in additional secured borrowing, subject to market and other conditions.

Paramount said: “Paramount intends to utilise the net proceeds of these borrowings, together with cash on hand and the net proceeds of the previously announced equity financing, to finance the purchase price for its previously announced acquisition of Warner Bros. Discovery, Inc. and the repayment of certain existing debt.”

The latest financing push underlines the enormous sums involved in a transaction that would combine two of Hollywood’s biggest entertainment businesses and bring some of the industry’s most recognisable studios, television networks, streaming services and franchises under the same corporate roof.

Paramount announced its agreement to acquire Warner Bros Discovery in February in a transaction valuing Warner Bros Discovery at an enterprise value of $110 billion.

Under the agreed terms, Paramount is paying $31 a share in cash for Warner Bros Discovery.

The combined company would control an entertainment portfolio stretching from Paramount Pictures, CBS and Paramount+ to Warner Bros, HBO, HBO Max and CNN.

Its library would encompass franchises and properties including Harry Potter, Game of Thrones, the DC universe, Mission: Impossible, Top Gun and SpongeBob SquarePants.

The proposed merger has faced opposition over its potential impact on competition, Hollywood employment, film production, cable television and news operations.

A coalition of 12 state attorneys general had sued to block the transaction before reaching a proposed settlement with Paramount this week.

The agreement remains subject to court approval.

Under the proposed consent decree, Paramount would make commitments covering film production, workers and competition. The company would be required to increase domestic film production spending by at least $1.5 billion over five years and establish a $47.5 million fund for workers affected by the merger.

The settlement also contains commitments governing theatrical output and cable negotiations and would establish oversight intended to protect editorial independence at CBS News and CNN.

However, the takeover encountered another legal obstacle on Thursday when US district judge Araceli Martínez-Olguín allowed groups opposing the transaction to intervene in proceedings over the proposed consent decree and postponed a hearing that had been expected to move the settlement towards approval.

The Block the Merger coalition had submitted an emergency request asking the court to allow interested parties to challenge what it called a “weak and unenforceable consent decree”.

Paramount has already secured regulatory clearances for the acquisition in dozens of jurisdictions.

In August, the company said the eight-month regulatory process had involved 68 countries and included clearances in the UK, European Union, Australia, Canada, Brazil, China and Mexico, as well as from the US Department of Justice.

The deal is being backed by substantial debt and equity commitments.

Bank of America, Citigroup and Apollo have committed to debt financing, while equity financing is backed by the Ellison family and RedBird Capital Partners.

Larry Ellison, the Oracle co-founder and father of David, has also provided a personal guarantee supporting the financing behind the takeover.

David became one of Hollywood’s most powerful executives through Skydance Media, the company behind films including entries in the Mission: Impossible and Top Gun franchises, before completing Skydance’s merger with Paramount in 2025.

The Warner Bros Discovery acquisition would dramatically expand that entertainment empire, combining Paramount’s century-old Hollywood studio with Warner Bros and its extensive film and television catalogue.

The settlement with the states would also require the merged business to maintain increased theatrical output for five years, with commitments beginning at 30 films annually and rising to 32.

Failure to meet certain requirements could trigger financial penalties.