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WB+P combined entity debt will be ~$90 billion

Posted by: Tallwonder on Feb 26, 22:57 in response to Qix's post How does Paramount expect to service $57b of bank debt (+...

There's Ellison's personal guarantees (he's worth ~$195 billion as of today & its expected he'll sell some Oracle shares over the next couple of years to help finance the equity purchase & I suspect help finance ongoing debt repayments too initially). Citi+BoA+Apollo who financed the $57b+ debt are expected to back end repayment structures (though that could change in late 2028 or cough cough.. post Nov'26).

BTW regulatory checks will take a long while & post Sept'26 Paramount will pay WB s/holders ~$700m for every qtr the deal doesn't go through. If it fails regulatory checks & falls through, WB get a one shot $7 billion (to add to the $2.4b Netflix already got from them). All this is in addition to the roughly $82 billion total purchase value of WB (@ $31/sh). Am not even sure that's the end of the costs but there's going to be massive layoffs too to save future costs (& adding severance package costs in the shorter term). Expect non-MAGA crowd to be the first to go rather than talent based assessment. Netflix/other studios will likely pick up good talent on the (relative) cheap - remember WB did some 8 or 9 consecutive $50m+ movies during 2024-25.

The bloating of costs far beats the AOL-Time Warner merger in late 90s. This WILL be a disaster business-wise, but that'll take until maybe the next decade (2030s) to unravel.

Hollywood's disaster/reshaping might be more immediate. The next Superman movie might even feature a certain version of the caped crusader from the multiverse make a cameo appearance (https://www.msn.com/en-us/news/politics/the-long-history-of-donald-trump-pretending-to-be-superman/ar-AA1pJE7j)!

CNBC : Netflix is walking away from a deal to buy Warner Bros. Discovery’s studio Peterlee Feb 26, 14:55

RIP Hollywood {nm} derpy tiger Feb 26, 15:13

Man, should have bought NFLX stock. It is going to the moon in after hours. {nm} notfabio Feb 26, 15:17

nobody really believed all the happy talk Ted was spouting but if they really do want a studio, can prolly just get Uni or Sony for the same derpy tiger Feb 26, 15:23

Netflix doesnt see Uni as a competitor and they are partners with Sony so they dont need to buy them {nm} Moviesnob Feb 26, 15:41

if they are committed to owning a legacy studio (I dont think they are) their next target would be Disney {nm} Moviesnob Feb 26, 15:42

My mind boggles at that. DTravel Feb 26, 17:51

RIP CNN {nm} Antibody Feb 26, 15:55

as you watch this week's episode of The Pitt, savor it because HBO is gonna go bye bye {nm} derpy tiger Feb 26, 21:35

I'm naive, but if I were Paramount+, I'd change my name to HBO. {nm} Abraxas Feb 26, 22:44

How does Paramount expect to service $57b of bank debt (+ Ellison's demands) required for the deal? {nm} Qix Feb 26, 20:22

via taxpayer funded government bailout? (nm) hammer72 Feb 26, 22:42