On Monday, Paramount revealed that after merging with SkyDance and Warner Bros. Discovery, the newly formed entity’s net debt will climb to roughly $79 billion. Moreover, plans to divest or spin off cable assets have been dismissed. The two companies will merge their streaming services to establish a unified platform, which will cover over 100 regions and boast a subscriber base exceeding 200 million. Last Friday, Paramount finalized its $110 billion acquisition of Warner Bros., aiming to slash costs by over $6 billion, though this move has sparked concerns about potential layoffs. Post-merger, the new company’s networks will be consolidated, and its content library will expand significantly. Earlier, Netflix and Paramount were embroiled in a bidding war, with Paramount emerging victorious and already having paid a $2.8 billion termination fee on Warner Bros.' behalf. The deal is projected to close in the third quarter of this year and is expected to secure antitrust clearance from the EU. Furthermore, Paramount’s close ties with the Trump administration may facilitate its passage through regulatory scrutiny.
