Skydance Moves to Close $110B Warner Bros. Discovery Deal With Massive Debt Package

Paramount Skydance is preparing to sell one of the largest debt packages in corporate history as it moves to close its acquisition of Warner Bros. Discovery, a deal valued at roughly $110 billion in enterprise value. The combined entity is expected to carry between $79 billion and $87 billion in total debt after closing.

Bank of America and Citigroup have committed between $54 billion and $57.5 billion in debt financing to get the deal across the finish line. The post-merger leverage ratio is projected at approximately 6 to 6.5 times EBITDA.

Bondholders have already granted consent for amendments to existing debt terms, removing one potential obstacle.

The definitive merger agreement was signed on February 27, 2026, with Skydance offering $31 per share in an all-cash deal. WBD shareholders ratified the merger on April 23, 2026.

The transaction is expected to close in the third quarter of 2026, pending US and European regulatory approvals.