Paramount Skydance Secures Permanent Financing for $111 Billion Warner Bros. Discovery Merger

Paramount Skydance secures permanent financing and $24B in equity for its WBD acquisition. Learn about the new debt structure and the upcoming April 23 vote.

By: AXL Media

Published: Apr 10, 2026, 6:39 AM EDT

Source: Information for this report was sourced from Variety

Consolidating the Financial Foundation for a Media Megamerger

Paramount Skydance has reached a definitive milestone in its pursuit of Warner Bros. Discovery (WBD) by successfully transitioning from bridge loans to permanent financing. According to an SEC filing on April 9, 2026, the company has syndicated its debt funding to establish a post-closing capital structure for the combined entity. This restructuring has successfully reduced Paramount’s aggregate long-term debt commitments from $54 billion to $49 billion. Andy Gordon, Paramount’s Chief Strategy Officer and COO, stated that the strong demand for these offerings underscores institutional confidence in the vision of creating a dominant global media and entertainment leader capable of rivaling Disney and Netflix.

Syndication Strategy Diversifies Institutional Exposure

The new debt arrangement significantly spreads risk across the financial sector, moving beyond the initial exposure of lead lenders Citibank, Bank of America, and Apollo Global Funding. The total debt is now distributed among 18 banks, including Deutsche Bank and Wells Fargo. The permanent financing includes a $5 billion "Term Loan A" and a new $5 billion revolving credit facility, which replaces previous commitments. Furthermore, Paramount has increased its committed liquidity from $3.5 billion to $5 billion, providing a substantial cash cushion as the company prepares for the integration of WBD’s massive television and film assets.

Equity Influx from Middle Eastern Sovereign Wealth Funds

The debt restructuring follows a massive equity syndication that brought in approximately $24 billion from influential international investors. The sovereign wealth funds of Saudi Arabia, Qatar, and Abu Dhabi, alongside the LionTree Investment Fund, have taken significant stakes in the new venture. Saudi Arabia’s Public Investment Fund (PIF) leads this group with a roughly $10 billion investment. According to company executives, this diversification of the shareholder base provides not only capital but also unique strategic and commercial opportunities in emerging markets, even as the deal remains subject to intense regulatory scrutiny in the United States and Europe.