Paramount has begun preparing to secure a $7.5 billion loan to acquire Warner Bros. Discovery.

Paramount Skydance has begun preparing to take out a $7.5 billion loan to acquire Warner Bros. Discovery. The company also plans to use other sources alongside the loan to finance the $110 billion deal.

Paramount plans to raise an additional roughly $44.4 billion in debt. The company will use this amount, together with its own funds and financing already agreed with investors, to acquire Warner Bros. Discovery and pay down existing debt. Once the deal closes, the combined company's total debt is expected to reach approximately $80 billion.

A few days earlier, Paramount settled disputes with California and other states, as well as with the Writers Guild of America. Following this, no major legal obstacles remain to prevent the deal from closing in the US.

Under the agreement, Paramount will increase film production in the US and establish a special board to protect the editorial independence of CBS and CNN. In return, the company will no longer be required to sell CNN or its well-known film brands.

Source: Reuters