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business/news//Bloomberg
Paramount Skydance Corp., led by Top Gun: Maverick co-producer David Ellison, agreed to buy Warner in February after outbidding streaming giant Netflix.
Bankers are assembling a jumbo debt package to fund Paramount Skydance's $110 billion Warner Bros. Discovery acquisition.
KEY POINTS
Paramount Skydance, with David Ellison as CEO, secured the deal by outbidding Netflix.
Larry Ellison's financial support was crucial to Paramount Skydance’s successful bid.
Paramount’s market value is about $12 billion, far lower than the deal's size.
This transaction will test debt investors’ appetite for funding large, risky media mergers.
Bankers are preparing to sell a jumbo debt package to support the $110 billion acquisition of Warner Bros. Discovery Inc. It’s a risky deal and comes at a moment when the bond markets have been wobbling. Even with the backing of the billionaire Ellison family, this will be a major test of debt investors’ willingness to support megamergers.
Paramount Skydance Corp., led by Top Gun: Maverick co-producer David Ellison, agreed to buy Warner in February after outbidding streaming giant Netflix Inc. The financial resources of his father, Oracle Corp. co-founder Larry Ellison, were central to winning the auction. After all, Paramount’s market value is barely $12 billion and it’s already weighed down with debt.