Warner Bros. Discovery has locked in bondholder approval to amend its debt terms, removing one of the final private-sector obstacles standing between Hollywood and its biggest merger in decades. The deal with Paramount Skydance carries an enterprise value of roughly $110 billion.
WBD shareholders had already greenlit the transaction on April 23, 2026. The bondholder consent, sought around May 20, was the necessary follow-up to ensure the company’s existing debt covenants wouldn’t torpedo the financing structure underpinning the entire deal.
What the deal actually looks like
The $110 billion enterprise value reflects the combined equity and debt of the merged entity. On the equity side, Paramount Skydance has secured more than $45.7 billion in guarantees from Larry Ellison, the Oracle co-founder. Major banks have lined up over $54 billion in debt commitments to finance the merger.
That net debt is projected to reach approximately $79 billion once the deal closes. The equity value of the merger sits at approximately $81 billion, with some estimates suggesting the enterprise value could creep as high as $111 billion depending on final adjustments.
Why this merger exists in the first place
Both companies have been fighting the same war on two fronts: declining linear TV revenues and a streaming landscape dominated by Netflix, Amazon, Apple, and Disney. Warner Bros. Discovery, despite owning HBO, CNN, and the Warner Bros. studio, has spent years trying to dig out from the debt pile left over from the original Discovery-WarnerMedia merger. Paramount, meanwhile, cycled through strategic reviews and leadership changes before Skydance Media, backed by Ellison’s deep pockets, stepped in.
Together, the combined entity would control a content library spanning everything from the Harry Potter franchise and DC Comics to the Mission: Impossible series, Star Trek, and SpongeBob SquarePants.
What still needs to happen
The merger still requires regulatory approval. The FCC is expected to scrutinize the deal, particularly around foreign ownership stakes. Media companies operating broadcast licenses in the US face restrictions on how much foreign capital can influence their operations.
If all goes according to the companies’ timeline, the deal is expected to close by late May 2026.
What this means for investors
For bond investors specifically, the amended debt terms are worth watching closely. The consent solicitation that just concluded likely involved concessions that give the merged company more operational flexibility. Combining Max (Warner’s platform) with Paramount+ could create a more compelling bundle for consumers.
