Paramount Faces $79 Billion Debt Post-Warner Bros. Merger, No Cable Asset Sales Planned

Paramount's net debt will surge to approximately $79 billion following its merger with Warner Bros., the company announced Monday. Paramount CEO David Ellison confirmed no plans to divest or spin off cable assets.

The combined entity will fold their streaming services into a single platform, aiming to boost Paramount's competitive edge against market leader Netflix. Together, they currently serve over 200 million direct-to-consumer subscribers across more than 100 regions.

The merger unites iconic networks like CBS, MTV, Comedy Central, BET, CNN, HBO, and TNT, along with a deep library of intellectual property. This includes major franchises such as "Game of Thrones," "Mission Impossible," "Harry Potter," "Top Gun," the DC Universe, and "SpongeBob SquarePants."

The deal, valued at $110 billion ($31 per share), saw Paramount pay Warner Bros.' $2.8 billion termination fee to Netflix. It is slated to close in the third quarter.

While expected to gain EU antitrust approval, the merger faces scrutiny from California's Attorney General. Cinema operators have also voiced concerns about potential job losses and reduced theatrical film releases.