Paramount Skydance Finalizes Warner Bros. Discovery Buyout at About $110 Billion

Overview

• Paramount signed the agreement to acquire Warner Bros. Discovery after Netflix withdrew, and it paid the $2.8 billion termination fee owed to Netflix.
• The combined company projects roughly $79 billion in net debt and plans to fold Paramount+ and HBO Max into a single platform while keeping cable networks intact.
• Financing includes $54 billion in debt commitments from Bank of America, Citigroup and Apollo, with $39 billion in new borrowings and $15 billion to refinance Warner’s bridge loan.
• Paramount targets more than $6 billion in cost savings largely from non‑labor sources and says the merged direct‑to‑consumer footprint already exceeds 200 million subscribers across 100+ regions.
• Netflix co‑CEO Ted Sarandos defended exiting within preset limits, labeled Paramount’s approach unusual or irrational, and warned the merger could require cuts of more than $16 billion; the companies expect closing in the third quarter with EU approval seen as requiring minimal divestitures.