Paramount-WBD Merger Set to Close in 2 Weeks as Combined Debt Nears $77 Billion

Q: With a crucial court hearing just days away, could a federal judge still derail this historic Hollywood mega-merger?

Yes, but only narrowly. The merger is much closer to closing after Paramount settled with the 12 states and the Writers Guild, yet it still needs U.S. District Judge Araceli Martínez-Olguín to approve the proposed consent decree and dissolve the existing no-close order. She has scheduled a Sept. 24 hearing because she says there are still “outstanding questions” about the settlement’s factual and legal basis and how it would be implemented. That means the judge could still slow or, in theory, block this version of the resolution if she finds the decree inadequate or unclear. She could demand changes, delay approval, or refuse to lift the order until those issues are resolved. Until she signs off, the settlement is not final and the companies cannot close. Still, the practical odds now appear to favor approval rather than a full derailment. The states that sued to stop the deal are now jointly asking the court to enter the consent decree, and the separate WGA challenge has also been settled. That removes the main active legal opposition that had threatened to push the case to trial in 2027. So the hearing remains a real checkpoint, not a formality. But at this stage, the bigger risk is delay or revisions to the settlement terms, not the wholesale collapse of the Paramount-Warner Bros. Discovery merger. Ellison’s expectation that the deal could close within about two weeks remains plausible if the judge approves the decree.

3 articles · Updated · Variety · Sep 22

A settlement with 12 Democratic state attorneys general cleared the last major antitrust hurdle, putting the Paramount-Warner Bros. Discovery merger on track to close within about two weeks.
The agreement requires no immediate divestitures and only limited behavioral commitments, including releasing at least 30 films a year with a 45-day theatrical window.
Morgan Stanley called the outcome a clear positive, saying a combined HBO Max and Paramount+ could top 240 million subscribers by 2030 and better challenge Disney and Amazon behind Netflix.
The merged company will still start with roughly $77.2 billion in net debt at end-2026, slipping only to $75.1 billion in 2027, with interest expense projected at $6.37 billion next year.
Analysts expect more than $6 billion in cost savings from integration, helping cut leverage from 6-7x EBITDA at close to 3-4x within three years as streaming and studios overtake linear TV.

Sources

Variety19h ago

Paramount-Warner Bros. Discovery Merger Closes After Antitrust Settlement, Faces $77 Billion Debt

TheStreet19h ago

Warner Bros., Paramount stocks jump, but there's a twist - TheStreet

Variety8h ago

Judge in Paramount-State AGs Case Still Has Questions, Schedules Hearing on Settlement Terms

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With a crucial court hearing just days away, could a federal judge still derail this historic Hollywood mega-merger?

Can a new streaming giant carrying over $77 billion in debt truly rival Netflix, or is it a financial trap?

The $110 Billion Paramount–Warner Bros. Discovery Merger: Legal Battles, Debt Risks, Foreign Influence, and Hollywood’s Creative Crisis

Overview

The $110 billion Paramount–Warner Bros. Discovery merger faces a critical legal blockade after a 12-state antitrust lawsuit led to a federal court order pausing the deal. This delay pushes the merger past a key September 30, 2026, deadline, triggering costly daily fees for Paramount and raising the risk of a massive termination penalty. While the merger has cleared major international hurdles with tough concessions, the combined company is set to carry enormous debt, driving aggressive cost-cutting and widespread layoffs in Hollywood. Meanwhile, the Ellison family and RedBird Capital retain full voting control, even as foreign investors provide nearly half the equity but have no governance rights, fueling concerns over editorial independence and industry contraction.

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