Paramount Seeks Additional $7.5 Billion Debt, Warner Bros Discovery Acquisition Delayed in Court

Paramount Skydance is raising big money again. The entertainment company led by David Ellison announced it is seeking an additional $7.5 billion loan (around Rp122 trillion) to finance its acquisition of Warner Bros Discovery, amid a legal process that has hit another snag. The move underscores the extraordinary scale of the transaction and the financial stakes Paramount faces.

In its official statement, Paramount said the funds will be used to finance the purchase of Warner Bros Discovery and repay part of its existing debt. The company also plans to raise around $44.4 billion in additional collateral-backed loans, depending on market conditions. In total, the funding needed to acquire Warner Bros Discovery reaches tens of billions of dollars, making it one of the largest transactions in the global media industry.

The acquisition deal was first announced in February, valuing Warner Bros Discovery at $110 billion. Paramount agreed to pay $31 per share in cash. If completed, the combined entity would house a vast entertainment portfolio: Paramount Pictures, CBS, Paramount+, Warner Bros, HBO, HBO Max, and CNN. Its content library includes giant franchises such as Harry Potter, Game of Thrones, DC Universe, Mission: Impossible, Top Gun, and SpongeBob SquarePants.

However, the road to a smooth merger remains rough. Twelve state attorneys general had sued to block the transaction before reaching a concession agreement with Paramount this week. That agreement still requires court approval. Under the proposed concessions, Paramount must increase domestic film production spending by at least $1.5 billion over five years, establish a $47.5 million fund for affected workers, and preserve the editorial independence of CBS News and CNN.

Nevertheless, on Thursday (24/09/26), US District Judge Araceli Martínez-Olguín allowed opponents to intervene in the concession approval process and postponed a hearing expected to expedite the deal. The Block the Merger coalition filed an emergency motion so that interested parties could challenge what they called "weak and unenforceable concessions." The delay is a blow to Paramount, which has secured regulatory approval in dozens of jurisdictions, including the UK, the European Union, Australia, Canada, Brazil, China, Mexico, and from the US Department of Justice.

"We will use the net proceeds of this loan, together with existing cash and the proceeds of previously announced equity financing, to finance the purchase price of Warner Bros Discovery and repay part of the debt," Paramount said in its official statement.

The transaction has solid financing support. Bank of America, Citigroup, and Apollo have committed to debt financing, while equity financing is backed by the Ellison family and RedBird Capital Partners. Larry Ellison, Oracle's founder and David's father, even provided a personal guarantee. David Ellison himself is known as one of the most influential executives in Hollywood after his success with Skydance Media and the merger with Paramount in 2025.

For Indonesia, this wave of consolidation among global media giants could affect the creative industry and the domestic entertainment market. If Paramount and Warner Bros Discovery officially merge, their negotiating power over digital distribution platforms, including streaming services operating in Indonesia, will increase. This could influence content licensing prices, access to global franchises, and opportunities for local production partnerships. On the other hand, the concentration of media power in the hands of a few big players could narrow the space for independent creators and local studios that have long been production partners.

The big question now: will the US court approve the existing concessions, or will it strengthen the opponents' demands? If the merger proceeds, the global entertainment landscape will change drastically, and Indonesia needs to prepare for a new wave of cross-border media corporate dominance.